In January, Tesla CEO Elon Musk had promised that the production of a more affordable car model would begin the following year. However, the electric car manufacturer has now canceled its plan to introduce this long-awaited affordable electric car model, as reported by news agency Reuters. The cancellation was based on information from three anonymous sources and internal company messages seen by Reuters.
The affordable model, sometimes referred to as Model 2, was expected to have a starting price of around $25,000 USD or €23,000. This was significantly lower than the starting price of Tesla’s cheapest car, the Model 3, which is currently around $39,000 USD or €36,000 in the United States. Musk had previously stated in an investor call in January that production of the more affordable car model would begin in the second half of 2025, according to Reuters.
Despite canceling the affordable electric car model, Tesla still plans to develop and launch a self-driving robot taxi based on the same platform. The decision to abandon the design of the cheap model has been seen as a shift away from Tesla’s long-term goal of making electric cars more accessible to the masses.
The cancellation of the affordable model comes at a challenging time for Tesla, as the company’s sales in the first quarter of the year fell short of expectations. Analysts have described the sales performance as disappointing
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