Despite Elon Musk's vehement denial of Tesla's decision (TSLA) Although it has reportedly abandoned the pursuit of a more affordable car, one key figure is not a fan of the direction the electric vehicle maker is heading.
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During a recent interview at HSBC's inaugural Global Investment Summit in Hong Kong on April 2, Tesla co-founder and former CEO Martin Eberhard said the recent news that the company had scrapped its plans for an electric vehicle cheaper was “a shame,” and noted that it can do better than other products it currently offers.
“I read recently that Tesla has decided not to move forward with their Model 2, their low-end car, because they don't believe they can compete with low-end Chinese cars,” Eberhard told Bloomberg TV's Haslinda Amin. “It's a shame, maybe they want to reconsider. It seems like a better market than that giant truck they make.”
In the same interview, he said he was surprised that Toyota (M.T.) He was “late to the EV game” and had been “watching BYD (WILLPOWER) for decades.”
Tesla cancels the cheapest model
Reuters reported On April 5, Tesla canceled plans for a cheaper electric vehicle, which would have been called Model 2. Citing three anonymous sources familiar with the decision, as well as internal company documents, the decision to change the model of less than 25,000 dollars occurred in February. 2024.
In response to the report, CEO Elon Musk wrote twitter.com/elonmusk/status/1776272471324606778″>in a post on x (formerly known as twitter) that “Reuters is lying (again).”
<blockquote class="twitter-tweet”>
Reuters lies (again)
– Elon Musk (@elonmusk) twitter.com/elonmusk/status/1776272471324606778?ref_src=twsrc%5Etfw”>April 5, 2024
Keep an eye out for lower-priced Teslas
At a question-and-answer session at the Petersen Automotive Museum in Los Angeles on April 7, Tesla design chief Franz von Holzhausen told an attendee to “stay tuned” and echoed Musk's sentiment when was asked about the less than $25,000 project.
“I would just say stay tuned,” von Holzhausen responded. “Just don't always believe what you read.”
<blockquote class="twitter-tweet”>
Franz twitter.com/woodhaus2?ref_src=twsrc%5Etfw”>@wood2
—Zack (@BLKMDL3) twitter.com/BLKMDL3/status/1777029442935964066?ref_src=twsrc%5Etfw”>April 7, 2024
The decision, however, represents a departure from a core ethos that Elon Musk has expressed since the company planned to make electric Roadsters.
in 2006 blog post on Tesla website Titled “Tesla Motors' Secret Master Plan (Just Between You and Me),” the Tesla CEO laid out the game plan for what he considered his ultimate goal: affordable electric “family cars.”
“Without giving too much away, I can say that the second model will be a four-door sports family car at about half the $89,000 price of the Tesla Roadster and the third model will be even more affordable,” Musk said in his 2006 entry. on the blog. “Consistent with a fast-growing technology company, all free cash flow is reinvested in R&D to reduce costs and bring the next products to market as quickly as possible.
“When someone buys the Tesla Roadster sports car, they are actually helping to pay for the development of the low-cost family car.”
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In December 2023, Musk talked about some of the work Tesla was doing toward a lower-cost electric vehicle.
“We're working on a low-cost electric vehicle that will be manufactured at very high volume. We're pretty far along in that work,” Musk told Sandy Munro of Munro & Associates. “I see the production line plans for that every week and I think the revolution in manufacturing that that car will represent will blow people's minds.”
“It's not like any automobile production line anyone has ever seen,” he added.
Currently, BYD is the pinnacle of Chinese automakers leading the conversation when it comes to “cheap EVs.” While Tesla's cheapest model, the recently redesigned Model 3 sedan, retails for $38,990, BYD's compact Dolphin hatchback costs Chinese consumers the equivalent of less than $14,000.
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