According to Reuters reports, the highly anticipated entry-level Tesla Model 2 EV project has been scrapped by the American brand. Initially expected to rival vehicles like the Volkswagen ID 2, Renault 5, and MG 4 EV, the Model 2 was aimed at a price point below GBP 25,000 (around Rs 26 lakh).
Official Comments and Response:
Tesla has not officially commented on the report, but CEO Elon Musk responded indirectly via social media. Despite inquiries, Tesla has refrained from providing details regarding the cancellation.
Focus on Autonomous Robotaxis:
Instead of pursuing the Model 2, Tesla plans to utilize the platform for a line of autonomous robotaxis, which will be produced in lower volumes compared to a mass-market vehicle like the Model 2.
Viability and Production Process:
The Model 2's viability was linked to a new production process called Unboxed, aimed at streamlining production and reducing unnecessary assembly steps. However, this innovative process will now be redirected towards the autonomous vehicle line.
Tesla Plans in India:
Tesla's decision coincides with India's push for EV investments, with a recent policy allowing substantial investment in the sector. Tesla is actively exploring opportunities to establish manufacturing facilities in India, aligning with the country's evolving EV landscape.