Cheap Tesla Model 2 canceled? Elon Musk answered!

News from Reuters reports the end of the Model 2 project at Tesla. The American manufacturer, through its boss Elon Musk, quickly responded to deny this. But as is often the case, the truth is definitely somewhere in the middle.

Elon Musk probably thinks that vultures are already circling his Redwood project even though we haven’t seen a single piece of the work yet. Tesla’s boss responded strongly to the report Reuters which mentioned last week the clean and simple cancellation of the popular “Redwood” project.. As a reminder, behind this name hides an electric car based on a new system (and therefore different from the Model 3/Y) and thus makes it possible to reduce the costs of producing the model by about $25,000 per entry ticket.

But we already know that Elon Musk has difficulty keeping promises. Before the launch of the Model 3, the businessman had already announced an unprecedented price ($35,000). As Carlos Tavares would say: “Welcome to my world“. This world belongs to cars and not anymore to Tech. Elon Musk discovers the joys of a major car manufacturer: production problems, cost control, after sales, procurement management…. I’m not so sure.

Better late than canceled?

Tesla seems to want to focus on its robot taxis© Jalil Chaouite

Reuters talks about the cancellation of the project at Tesla that would now focus on robot taxis and autonomous cars, with management allegedly “interested” for the development of FSD, the in-house operating system in version 12. Elon Musk also promises an official presentation on August 8.

Tesla plans to produce and sell self-driving cars, for the purpose of transporting people. Machines that already exist in China, in particular, but which are still rare. The market therefore may be large, but this does not mean the direct death of the Redwood project. Additionally, Elon Musk quickly responded by stating that Reuters was “lying as usual” and that the news was false.

Accept failure?

Reuters is lying (again)

– Elon Musk (@elonmusk) April 5, 2024

So the truth should lie between these two versions. It cannot be excluded that Tesla has directed part of its resources and funds towards robot taxis without completely abandoning the “Model 2”. Moreover, the two vehicles would share the same platform, the robot taxi just lacks certain features to fulfill its role as an autonomous transport. If the technical basis is there for the two machines, there is no doubt that the Model 2 will see the light of day. But when?

Tesla now no longer has the right to make mistakes: production is starting to decrease, and the competition is getting stronger for the Model 3 and Y. And in China, where Tesla is an important player, then the door opens very wide. for Chinese brands in popular and accessible places will definitely be a big mistake.