After Tesla Teaser Image, More Speculation About ‘Model 2’

Forbes Innovation Consumer Tech After Tesla Teaser Image, More Speculation About ‘Model 2’ Brooke Crothers Contributor Opinions expressed by Forbes Contributors are their own. I cover and review electric vehicles and consumer tech. Following May 28, 2023, 11:42pm EDT | Press play to listen to this article! Got it! Share to Facebook Share to Twitter Share to Linkedin The future lower-cost Tesla? Credit: Tesla A new high-volume Tesla is coming.

That seems certain. Elon Musk drove home this point recently, triggering speculation about the $25,000 vehicle he referenced a few years back. The Update Musk showed a silhouette (above) of the “new product” at the 2023 Annual Shareholder Meeting: “I just want to emphasize that we are actually building a new product.

. . we are actually designing a new product.

. . we’re not sitting in our hands.

” No timing was mentioned. The meaning of “building” is open to interpretation. So, when a mass-produced product will be ready to go is unknown.

Musk continued. “Two new products. .

. And both the design of the products and the manufacturing techniques are head and shoulders above anything else that is present in the industry. ” Previously, in March, Musk had shown a slide (below) at its Investors Day event of two vehicles — concealed by sheets — with radically different contours.

Make lots of them: 5M+ MORE FOR YOU The Best Electric Bikes To Get You Across Town Or On The Trail 4 Benefits Of Leveraging Contingent Labor In The Electric Vehicle Transition Toyota Says Public Charging Not Ready For Pure EVs The Tesla CEO intimated that both products will be high-volume, which may indicate a relatively low price (at least for Tesla). — “If I were to guess, I would say of these two new products. Just these two new products alone.

I would say. . .

we will probably make. . .

in excess of five million units a year of these two models combined. ” — For reference, Tesla made just shy of 1. 3 million Model 3/Y in 2022.

Musk also talked about lower material and component costs, including a next-generation lower-cost drive unit (which uses a permanent magnet motor and no rare earth materials) and lower battery cell costs, among other things. Can Tesla succeed in new segments? Back in 2020, Musk said : “We’re confident we can make a very compelling $25,000 electric vehicle that’s also fully autonomous. ” Is that vision still viable? “Historically, sub-$25K vehicles have fallen flat with little-to-no shopper receptivity,” Ivan Drury, Edmunds’ director of insights, told me in an email.

“However, if one materializes in the form of an EV and customers aren’t left feeling like they’ve compromised on all other aspects of rideability–including adequate range–that would be a minor miracle,” Drury said. Indeed, General Motors recently said it was abandoning its sub-$27K Chevrolet Bolt and is moving decidedly upscale with its EV offerings in the coming years. “Everyone wants lower transaction prices, but the current offerings throughout the industry have made it clear the masses aren’t willing to compromise on content, interior space and body style,” Drury said.

Tesla Global Fleet slide from March 2023 Investor Day showing two high-volume cars under wraps. Credit: Tesla Speculation: Anyone’s guess A Reddit forum was quick to reference the “Model 2” after the shareholders meeting. While others pointed out that the silhouette looked like existing Teslas (Model 3 and Model Y).

The Model 2 is often used as a coverall term for the next high-volume Tesla. Speculation about the so-called Model 2 has been driven by numerous media reports with several reports citing a Loup Ventures newsletter that predicts a “Model 2” in 2024. At the Shareholders Meeting in May showing a future, unannounced vehicle.

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