Tesla cancels Model 2 project?

The Tesla Model 2 will not be built. That's the bombshell dropped by Reuters, which quotes three sources close to the company. The reason: fear of competition from Chinese manufacturers, including BYD, which is committed to launching more and more electric cars in many markets.

According to the press agency, Tesla will divert the funds initially earmarked for the Model 2 to the self-driving robotaxi project, in order to create a fleet of compact vehicles. So goodbye to the £22,000 Tesla? 

Change of direction

"Elon's directive is to go all in on robotaxis", one of the sources told Reuters, adding that the decision would have been taken at a meeting in late February 2024. Robotaxis are back at the top of the priority list. This comes as no surprise as Elon Musk has repeatedly stressed that this type of solution could represent the future of mobility. However, the project remains shrouded in fog, and it is unclear how it will develop and what the timetable will be.

Autonomous driving is certainly one of the ambitions of Tesla's CEO, but between the technology and the legislation, it is still a dream. Add to that the various troubles in which various Tesla cars have ended up in more or less serious accidents while the SDF was active, and it's clear that there's a sea of uncertainty and difficulty between saying and doing.

Tesla Model 2, our rendering

Then there's the question of timing. Tesla has been very busy in recent years with the production and launch of the Cybertruck, while its Chinese competitors have concentrated on smaller, cheaper models, managing to attack the market with particularly low prices. A strategy that the Tesla Model 2 could not match.

The source went on to explain how Tesla's product plans could change again depending on economic conditions.

"Reuters is dying"

For now, this is Elon Musk's only comment on the subject, naturally confined to a tweet. Tesla's number one therefore seems to be denying any rumours of a farewell to the Model 2. So what's true about this story?

 

We'll certainly know more in the coming days.

Read also:

Tesla Model 3: Everything we know about the Performance version

Tesla has produced its 6 millionth vehicle

Tesla goes it alone: After Superchargers, now 5G network

Tesla ready to use humanoid robots to produce electric cars

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