We reported only a few weeks ago that Tesla may be starting trial production of the “Tesla Model 2”, their affordable electric vehicle which would cost around $25,000.
The vehicle is definitely real, having been confirmed by people such as Tom Zhu, president of Tesla’s operation in China.
The latest news will however be somewhat disheartening who were waiting for a Tesla they can afford. Speaking at an internal all-hands meeting, Elon Musk revealed that Tesla was only looking to start production sometime in 2023. By then, the lower price will be enabled by a 50% reduction in the cost of batteries.
He also suggested the car may be designed for the autonomous market, and come without pedals or a steering wheel, something which will likely push the project out even further.
Given Tesla’s current booming sales and supply constraint, we can understand why Tesla may be putting their more affordable car on the back burner. The company will however have to contend with a booming range of low-cost Chinese EVs which may capture the market long before Tesla can arrive to address it.