Many are curious if Tesla will still make its long-awaited $25,000 car, which people often call the “Model 2.” In the past, CEO Elon Musk encouraged the making of an affordable Tesla since his goal was to offer EVs to as many people as possible. However, according to Reuters, the situation seems less certain now.
Tesla executives told the publication that Musk had already decided to shut down the project and put more resources into making robotaxis. A big surprise came when Musk himself stated otherwise, conflicting with his company’s executives and making some people doubt what would happen with the vehicle.
Tesla’s Affordable EV
Tesla’s offerings consist mainly of the Model 3, Model Y, and the Cybertruck and haven’t changed much for years. This new model could boost the brand and make it more affordable and accessible. The issue with the project may cause Tesla to lose ground in the quickly developing worldwide EV field. Many experts expect that any new “affordable” Tesla, if it appears, may only be a trimmed-down version of the Model 3 or Model Y instead of a whole new design
Tesla Launches More Affordable Model Y Juniper Trim in the US
China’s EV Price War Heats Up
By fighting each other on price, EV manufacturers in China, especially BYD, are leading a price war. 34% price drops have caused a rise in sales over a short period, while foot traffic at BYD dealerships has shot up by 30–40%. Yet, these discounts have made officials in China worried about what they mean for the EV sector’s future.
State channels and governing bodies have spoken out against aggressive competition, saying that it risks harming profits, quality, and China’s place as a major manufacturer internationally. The Chinese ministry is preparing new laws for the EV industry to stop rivalries from getting out of control.
Trump’s EV Rollbacks Face Legal Pushback
In politics, Donald Trump is trying to undo many of President Biden’s plans for EVs. The administration halted help for developing an EV charging network and started actions to remove EV tax credits and incentives for making them.
Many Americans believe that the Trump administration abused the Congressional Review Act to overturn California’s stricter vehicle emissions rules, which conflicts with a number of other states that follow California’s example.
At the same time, plenty of legal challenges are already being made. According to the U.S. Government Accountability Office, the Department of Transportation had illegally kept infrastructure money provided by Congress and thus needs to release it. This move could block Trump’s initiative to cut funding for EV infrastructure for the time being.
Can a $25,000 Tesla Save the Brand?
The idea that a $25,000 electric Tesla could be available is still attractive to both buyers and investors alike. This model could spark sales, enter fresh markets, and make Tesla’s recent low sales increase once again. However, at this stage, it is mostly a theory instead of a practical reality.
Should Tesla fail to fulfill its aim of a low-priced EV, the company could see other automakers, both from China, Europe, and the U.S., growing in its place. In the next 12 to 18 months, things will be especially important for Tesla. Unless it returns to offering new solutions and making things accessible, it could lose the competition.
