Tesla Model 2 scrapped as Elon Musk says £25k EV is “pointless”

Plans for the highly-anticipated Tesla Model 2 have been axed as the firm’s focus moves to autonomous vehicles and the upcoming Robotaxi - according to company boss, Elon Musk. 

Speaking at the Tesla Q3 earnings call, Musk declared, “I think we’ve made it very clear that the future is autonomous” he said. “I think having a regular 25k [dollar] model is pointless. It would be silly. It would be completely at odds with what we believe”.

The speculatively dubbed ‘Model 2’ was expected to be a pared-back, more compact take on the brand’s current models. Tesla even shared a teaser image of the Model 2 at its annual shareholder meeting last year, showcasing the future car’s curving roofline that adhered to the familiar design language found on the Model 3 and Model Y. 

The Robotaxi will now take the mantle as Tesla’s affordable small vehicle, however. It should arrive around the same time as the much mooted Model 2 – though Musk’s plans are always subject to change. At around $30,000 (£23,000), the Robotaxi will also sit in roughly the same price bracket as the now-defunct Model 2. 

Tesla’s existing range of models will continue to be updated in the meantime. Next year we’ll see the facelifted Model Y ‘Juniper’ SUV, which if it were to follow the recently-updated Model 3, could see its base price slashed to around £42,000.