Photo by Amelia Holowaty Krales / The Verge
The Tesla Model 2 may be no more.
According to Reuters, Elon Musk has canceled the company’s plans to build a low-cost electric vehicle in favor of going all in on a robotaxi. The news outlet, citing three sources in the know, said the decision was communicated to employees during an all-hands meeting in late February.
For years, Musk has been promising an affordable electric vehicle, likely priced at $25,000, as a way to broaden the appeal of plug-in vehicles. He first mentioned it in a 2018 interview with YouTuber Marques Brownlee, saying, “A $25,000 car, that’s something we can do.” Then, in 2020, at the company’s first Battery Day event, he speculated that Tesla could eventually produce upward of 20 million of these vehicles in a…