Elon Musk had confirmed Tesla will soon build its smallest and cheapest car yet a $25 000 hatchback that will cost as low as $18 000 in the US. The reason will be discussed later in the article.
The compact car has been named the Tesla Model 2 with some radical new battery technology, and it could even be released in 2022. It isn't try known when it will be in the UK or indeed wider Europe and America. But there has already been confirmed that it will be designed in China and sold globally.
Here is the latest update about the Tesla Model 2.
First welcome to my blog where we also talk about the future of Tesla, Tesla stock, and Elon's projects.
Elon had told Tesla employers that the automaker is aiming to its previously announced $25 000 electric car in 2023. The CEO hinted theft it might even be equipped with a steering wheel. At Tesla battery day last year, CEO, Elon Musk announced that Tesla will be making a $25 000 electric car. The CEO commented in the announcement,
"Tesla will build compelling $25 000 electric car that is also fully autonomous".
He made it clear that this new price point is achieving through Tesla's new battery cell and battery manufacturing effort, which could reduce battery costs by over 50%. The $25 000 Tesla electric car which is often referred to as the "Tesla Model 2" has been likened to a new electric hatchback that Tesla had been planning to produce at Giga factory, Shanghai in China, and effort globally.
Last year, Tesla announced plans to establish a new R&D center in China to build a Chinese style electric car, which he started taking design submissions for its China-made small electric car last summer, and started hiring for the program shortly afterward. At the time, the automaker also released this early design drawing of the small eclectic hatchback. It led many to think that it was the design direction and form factor that Tesla is going for in the upcoming electric vehicle.
Recently, it was reported on some media reports coming out of China that claimed the production of the Model 2 could start imminently. However, a warning was sent that this is likely to happen.
Now, Elon Musk has confirmed a better idea of the planned timing to release the new cheaper Tesla vehicle in a company-wide meeting held in the night. sources who were in the meeting told the electorate that the CEO said Tesla was aiming to start production of the new $25 000 electric car in 2023. In his comments, Musk linked the release of the new Model 2, not an official name to Tesla achieving a deployable full self-driving system. And even ask Tesla employees,
" Do we want to have this car come with an electric wheel and pedals?"
He made it sound likely the new Tesla vehicle will not even be equipped with a steering wheel.
Back in 2018, Tesla unveiled an image of the vehicle without a steering wheel and pedal and said the goal was to release such a vehicle within 2years. Tesla is currently trying to release its full self-driving better software to its wider fleet in the US by the end of the month. Once the software, which will still require driver attention, is out, Tesla will improve it using data from the fleet, and try to make it several times safer than human drivers to achieve regulatory approval to use it as a true full self-driving system.
The progress made on that front will dictate whether the new Tesla vehicle will come with a steering wheel or not. What makes the $25 000 Tesla electric car an anticipated product — there's no denying that the biggest catch of this EV will be its $25 000 starting price and if all the stars align, the Model 2 could cost as low as $18 000 for some lucky birds. "How?", you ask. Well, the Bidden administration is looking to pass a green Act that could triple the Federal tax credit cap for electric vehicles. The tax credit will be offered on 600 000 vehicles from each automaker instead of the current cap of 20 000 vehicles. As we know, Tesla has surpassed the 20 000 caps and isn't eligible for a federal tax credit under the current regime, but if the green Act comes into play, 400 000 vehicles from Tesla will be eligible for a federal tax credit of up to $7 500 less than the first cap. Mind you, this is without factoring in the state credits, which bring down the effective price considerably lower. Check out how cheap the new Ford F-150 lightning costs in some states — Teslas delivered 235 000 worldwide. This means the company could exhaust its fresh cap in less than 2years.
The company started 2021even stronger delivering 184 800 Tesla all around the world, thus, relishing the best quarter in its 113th-year history. There's no word on when the green Act will be passed but, there's a high chance that the Tesla models currently on sale will benefit from this in the $25 000 electric car could miss out, until there's no confirmed timeline on both —the green Act and the cheapest Tesla's arrival. It's hard to say. You shouldn't expect much from a $25 000 EV, but logic dictates the car will favor range over performance. So, how much range are we looking at? No less than 250miles to start with. The lowest range that Tesla currently offered on i's Model 3 standard range — 263miles.
Back in July 2020, Musk had tweeted that a range of fewer than 250miles as per the EPA estimations would be unacceptably low. It was said in a different context but it could hold time here as well because the company has developed new batteries that will help contain costs.
At the 2020 Tesla battery day event, the automaker revealed its new battery called "The 4680", which refers to its dimensions – 46mm x 80mm. It boasts of a tablet cylindrical cell design and is bigger than what Tesla currently makes use of. The 4680 cell sets up for 6times the power, 5times the energy capacity, and 16% more range than the current crop. The highlight of this is that the 4680 cells will result in a 14% cost reduction per kilowatt-hour at the cell form factor level.
This battery wasn't used in the recently unveiled model S plaid, so, it could mean Tesla has reserved it for the budget models. There are no wits on the body style but, it could be Tesla's first hatch. The company has two Sedan-one crossovers, one SUV, a pickup truck, if we can call that, the Cyber truck, and even a sports car. The only popular niche that's left is the hash. It also makes sense to offer a hatch as your cheapest design. A crossover will undermine and cannibalize the Model Y, and adding a third Sedan would do the same to the Model 3. So, it would be safe to assume that the $25 000 electric car will be a hash. it has even been rendered in its signature, though wide looks in the past.
Apart from all this, we speculate the $25 000 Tesla electric car to have a single motor setup for the base trim, front-wheel drive, most likely 0 to 60miles/hour in around 7seconds, in the ballpark of 200horses and 225pound-feet of torque, and it will be available with autopilot. Musk has confirmed the same.
There's already A lot of buzz about the $25 000 Tesla electric car but the timeline is still sketchy. The auto car has said it will go on sale in 2023, but can it? We don't expect deliveries to begin anytime soon, though it will be built in China And exported all across the globe. Some reports suggest it will be designed and developed in Germany, we'll have to wait to see how everything turns up. In the meantime, when do you think the $25 000 Tesla electric car or the Model 2 will arrive? let me know down below on the comments box.
Thank you and see you in the next one.
