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Where is the Affordable $25K Model Promised by Tesla?

published: 2022-02-07 9:30

Tesla’s CEO Elon Musk had commented during the company’s 2020 Battery Day event that the company will be developing a US$25K model, but said recently when approached with the topic that there is simply no room in his schedule to deal with new models in the current stage.

Despite their surging popularity, the prices of EVs remain obstinately high, and that is why the key in elevating their adoption lies on a price tag that is close to that of Toyota Altis.

In an announcement made during the company’s 2020 Battery Day event, Tesla’s CEO Elon Musk said that the company “will make a compelling $25,000 electric vehicle that is also fully autonomous.” The affordable EV model will allegedly adopt the latest 4680 battery, and equip a comprehensive self-driving system.

With that being said, Musk admitted today that no R&D has been executed on this model within Tesla simply because there is too much on the plate right now.

The particular model is often referred to as Model 2 by the Chinese media and online celebrities, who have been claiming that it will be the first truly “authentic” Chinese Tesla model that will be developed and manufactured in China. Now that Musk has indirectly denied the claim, how will these so-called “leakers” react?

Musk had commented a long time ago that the reason for the US$25K price tag lies on the rough reduction of 50% in vehicle cost thanks to the new battery, as well as a minor price adjustment where the Model 3 that was initially priced at US$40K is now below US$30K.

The problem is that the mass production schedule for the 4680 battery is slower than expected, which impacts the production of other models such as Roadster 2, Semi, Cybertruck, and Model S/X Plaid. Model S/X Plaid cannot be continuously postponed due to various reasons, and were thus delivered using old batteries, whereas the other three models will not be able to complete delivery without the new 4680 battery.

The large truck Semi is allegedly the first delivered vehicle adopted with the 4680 battery. Due to insufficient volume in battery production, Tesla is merely able to deliver a small batch of the vehicle to clients who made early preorders, such as Pepsi.

Under such severe circumstances, the creation of the prototypes of the affordable Tesla models, let alone their production and delivery, has become impossible, so those who are anticipating for the model will have to sit back for now.

 (Cover photo is a rendering of Model 2; source: Autocar)

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