Elon Musk Debunks Rumors: Tesla’s Budget-Friendly EV Still in Play

Tesla’s Rumored Cancellation of Affordable Electric Vehicle
Proven False: What Will It Look Like?

The recent rumor about the cancellation of Tesla’s affordable electric car, Model 2, has stirred up a buzz. Reuters reported on the 6th (local time) that Tesla had halted the development of its low-priced electric car. Shortly after, Elon Musk, Tesla CEO, strongly refuted this, stating, “Reuters is lying (again).”

Although Tesla’s stock fell 6% in a single day due to a Reuters report, if Musk’s rebuttal is true, then the Model 2 is still in regular development. Expectancy is building with a projected price under $25,000. An AI-based concept image has emerged, attracting attention.

AI-Based Rendering Emerges: Small Crossover Likely

Automotive specialist creator vburlapp revealed an anticipated rendering of Tesla’s Model 2 on Instagram on the 6th. The rendering, made with the help of AI, references Tesla’s existing lineup, like the old Model 3 and Model Y. The Model 2 is expected to be a small crossover. A hatchback style is more likely than a sedan.

The rear end features a horizontal tail lamp, a current trend, as opposed to the separate tail lamps used in the current lineup. The center features the Tesla lettering, and the rear glass smoothly connects to the glass roof without a trunk lid. The front end features a shorter bonnet than the Model 3 and Model Y, and Tesla’s design characteristic of a windshield glass extending into a glass roof is visible.

Development Alongside Robotaxis: Possible Transition to Autonomous Driving

Musk was initially somewhat skeptical about the development of the Model 2. He believed there was no need to focus on affordable electric cars in a world where robotaxis are commonplace. Therefore, Tesla focused on securing autonomous driving technology, including Autopilot, and the target launch date for Model 2 was reportedly postponed indefinitely.

However, the management team was able to persuade him. They pointed out to Musk that “it will still be a long way before the government approves autonomous vehicles, and it may take even longer in markets outside the U.S.” They proposed a compromise to develop a new car that could easily remove the steering wheel and pedals in preparation for the easing of autonomous vehicle regulations.

Next-Gen Platform Application: Release Date Uncertain

Model 2 is being developed based on the next-gen platform alongside robotaxis, and it is known to be equipped with a 4680 cylindrical battery. If Tesla, which has led price wars in major markets including China, releases an affordable electric car, it will gain an upper hand. However, the release date for Model 2 has not yet been finalized.