‘Tesla abandons cheap EV plans’

Tesla has scrapped plans to make an affordable EV, Reuters reports, citing multiple sources within the company.

The decision will be a reversal of CEO Elon Musk’s promise. Just in January, he announced that Tesla planned to start production of a new model, known as Model 2, in the second half of 2025. The car will be produced for about 25 thousand dollars and built in Berlin.

Musk denies reports about the plans being scrapped. On X he wrote that ‘Reuters is lying (again)’.

However, the market for affordable EVs is currently already saturated with models from BYD and other Chinese manufacturers, the reason Musk pulled the plug on the plans. BYD saw sales increase to 2.4 million vehicles last year.

In China, BYD offers Seagull for less than 10 thousand dollars. According to Reuters, the manufacturer also wants to export this model. Buyers outside of China would pay twice that amount, which would still be less than the Model 2.

Robotaxis

According to Reuters, Tesla is now focusing on developing an autonomous robot axis based on the platform created for the Model 2. However, it is not yet clear when and in what revenue model the cars will come to market.