Tesla new model is on shaky grounds
(MENAFN) Elon Musk’s rejection of claims regarding the end of Tesla’s affordable electric car initiative reportedly raised concerns among the company’s top brass, according to various accounts.
In April 2024, Musk publicly pushed back against a report that stated Tesla had abandoned its plans for a budget-friendly electric vehicle, previously referred to as the Model 2. At the time, he accused the outlet of “lying (again),” and said the report was false. However, several internal sources indicate that the situation was more complex behind the scenes.
As per those familiar with internal developments, many high-level employees had already been briefed weeks earlier that the Model 2 project was no longer moving forward. When Musk took to social media to contradict that narrative, it reportedly left multiple executives surprised and uncertain about the company's actual direction. Some even approached Musk to clarify whether he had changed his mind. He allegedly reaffirmed that the initiative remained shelved, further complicating the messaging around Tesla’s strategy.
The Model 2 was originally intended to be Tesla’s gateway into mass-market affordability. First hinted at in 2020, the car was projected to launch with a price tag of $25,000 — a significant drop from the more expensive Model 3, which begins at $42,500. Despite Musk’s denial of the cancellation, no evidence of progress on the Model 2 has emerged since, and the company has neither released an update nor officially acknowledged ending the project.
Instead, attention appears to have shifted to autonomous vehicle technology, with the company focusing more on the development of self-driving robotaxis. Nonetheless, the lack of clear communication has reportedly left suppliers and investors unsure of where Tesla stands on its once highly anticipated budget EV.
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