Joining the lineup of Tesla technologies with uncertain launch dates is the infamous Model 2 or $25,000 electric vehicle. Aside from the Model 2, the Tesla Cybertruck is yet to be launched in the market. Another innovation with an unpredictable release date is the Tesla Bot, better known as Optimus. Although Tesla CEO Elon Musk offered insights into how Optimus could benefit the public, the robot's release date hasn't been made public yet. In some quarters, there's the opinion that Tesla can't develop a cyborg equipped with the abilities that Musk bragged about. For some people, the Bot is more fiction than reality.
While it's exciting to see electric cars go mainstream, their prices are notoriously high. Although automakers have cited the limited availability of parts used in production as the culprit, it doesn't soften the blow of these high prices. Sure, there are a couple of affordable EVs, but not many offer the same practicality of EVs beyond $50,000. For instance, the Mazda MX-30 is relatively inexpensive. However, an EPA-estimated range of 100 miles makes it easy to skip the electric crossover when browsing the dealership.
The Model 2 or $25,000 Tesla is Musk's vision of a low-cost EV that'll appeal to people intending to go electric but at a low price. A recent survey identified affordability as one of the reasons behind some people's unwillingness to switch to EVs. Interestingly, it's longer called the Model 2, though that name has already stuck with the media. The media opted for the name since it assumed that the Model 2 would be a cheaper version of the Model 3, which is the least expensive Tesla today. Unfortunately, CNET reported that the much-awaited Model 2 isn't likely to be released soon. In Jan. 2022, Musk was quoted saying that Tesla already has its hands full and "isn't currently working on a $25,000 car." Admittedly, Tesla is looking to launch its Full Self-Driving package soon, among other projects.
The Ugly Truth About Tesla's $25K EV
With an ongoing supply crisis caused by chip shortage, Tesla is forced to make a tough business decision and channel its resources elsewhere. For instance, customers can get the Model Y Long Range variant sooner, though they must pay an additional charge. Additionally, the range offered by this variant is reduced due to the 20-inch Induction wheels. Considering that Tesla could sell the Model 2 for considerably less, it's unlikely that the automaker can afford to deal with a lower profit margin now.
While it's likely that the Model 2 will be available for purchase in the U.S., it will be built outside North America. The Model 2 will be manufactured in Tesla's Gigafactory in Shanghai, China. Unfortunately, the Model 2 may not qualify for a tax credit following the Inflation Reduction Act's passage. By Jan. 2023, the U.S government will no longer offer tax credits for EVs made outside North America. Although some customers may do without the rebate for a vehicle that costs $25,000, some consideration should be given to what possible add-ons like FSD or Autopilot would do to the starting price. These upgrades, if selected, will drive the price upward.
Source: CNET