In the first half of 2025, Tesla CEO Elon Musk had promised that the production of a more affordable electric car model would begin. However, recent reports have indicated that the electric car manufacturer has scrapped its plans to introduce the long-awaited affordable car model. The Model 2, also known as the “cheap model,” was expected to have a starting price of around $25,000, making it accessible to a wider range of consumers.
Despite canceling the affordable model, Tesla is still planning to continue developing robotaxis based on the same platform as the now-defunct electric car. This decision marks a shift away from Tesla’s goal of making electric cars accessible to everyone. The company had previously pledged that it would make electric cars affordable for all and achieve its growth targets by selling 20 million vehicles by 2030.
Tesla’s sales in the first quarter of this year were disappointing, with a decrease in the number of cars sold compared to the previous year. Last year, China’s Byd surpassed Tesla as the world’s largest electric car manufacturer. These developments have raised questions about Tesla’s future strategy and ability to meet its ambitious sales targets. It remains unclear how this decision will impact Tesla’s position in the competitive electric car market.
Tesla did not respond to Reuters’ request for comment on why they canceled their plans for an affordable electric vehicle model or how they plan to move forward with their development of robotaxis based on their current platform without an affordable option available for consumers who cannot afford higher priced models like Model 3 which starts at around $39,000 in US
