Tesla’s Shareholder Meeting 2021 revealed many things for Tesla investors. Among them, one interesting thing told by Elon Musk is that there is no Model 2. Unfortunately for investors, the question wasn’t about whether there will be a $25,000 Tesla car or not. But the question was on about the name of the car.
There was no official announcement in any form about a Tesla Model 2. People have been naming the $25,000 car as Model 2. In the shareholder Meeting, as Elon Musk stated that there won’t be any Model 2, many people wondered if there won’t be the car itself. Though Musk didn’t elaborate on the matter, it has been clear in the past that Tesla is working on a $25,000 vehicle. It is to be used for targeting specific locations, as Tesla is soon going to enter many other countries globally.
Elon Musk: There is NO Model 2. The Model 2 is not a car.
— Sawyer Merritt 📈🚀 (@SawyerMerritt) October 7, 2021
For all the name guessers, considering that Tesla’s cars are forming the series, “S3XY” which was initially meant to be SEXY. However, when they planned for a Model E, Ford threatened to sue the company for trademark infringement. That is how the Model 3 came into existence. Evidently, the $25,000 vehicle being named Model 2 makes no sense, as whatever Tesla does there is always some extra thought to it.
The $25,000 vehicle is not canceled
For those still insisting that the vehicle is canceled. Tesla CEO Elon Musk has announced previously at their Tesla Battery Day last year that their next $25,000 vehicle will be released in 2023. He also indicated that the car wouldn’t be equipped with the steering. Musk said several times during the new vehicle launching and in many interviews and articles that the company’s goal is to make a completely automated car and release it in the next couple of years. Reports said that the new automated car will be manufactured in China in their Shanghaigiga Factory and export to other countries.
There is plenty of evidence that the vehicle is still on track. Last summer, Tesla hired the designing program after taking design submissions for their small electric car. Tesla also released their design drawing of a small electric hatchback which everyone thought that the vehicle is their upcoming electronic vehicle.
To see this in a clear way, Tesla’s marketing resembles a top-down approach. For example, The company started with the Roadster and then the premium model S and Model X vehicles, which accompanied by the mass market production Model Y and Model 3 sedans. On one side, it is good that the company is making ways to produce its vehicles available for everyone which has been Musk’s primary goal. On the other side, investors aren’t happy with the production of vehicles as they don’t understand how the electric market behaves.
But the higher inventories of the vehicles might affect its sales. But here the story is different, when more electric vehicles are produced, the EVs price will be dropped below the gas running vehicles. Tesla already has plans of reducing the battery cost and started projecting their plans in their recent vehicles. If the production and price are available for everyone the electric cars will reach to 30 million mark in the next five to six years.
Agreeing to it, Musk said “Seven years for sure to 30M+ new fully electric vehicles per year, six years, maybe. Five years is possible but unlikely. An extra year makes a giant difference when it comes to exponentials.”