$25,000 Tesla Model 2 isn't being worked on anymore, new report claims

Earlier this month, a report came out claiming Tesla canceled its $25,000 Model 2 car. Elon Musk himself promptly denied the rumor, but today a new report is adding some context to the whole situation.

It turns out the Model 2 project may not be canceled per se - and so Elon Musk's rebuttal of that claim still stands. However, the project is said to be "on the back burner" and at least postponed at the moment, as the company is shifting focus to its robotaxi, which will be unveiled in August and is based on the same platform as the Model 2.

So, for now, the Model 2 project isn't moving on, but it's also not exactly canceled / scrapped forever. It still exists, in theory, but it's been defunded and "many people" involved with it were laid off as part of the round of layoffs that was announced earlier today and affected around 10% of Tesla's staff. So, Elon Musk's previous denial of the cancelation of the Model 2, while technically valid, is quite misleading.

We're looking forward to seeing the CEO's response to today's report, but while we were skeptical of the initial one, you know how the saying goes - where there's smoke, there's fire. Two separate sources claiming a similar thing within a couple of weeks... it feels like something really could be going on internally at Tesla regarding this project. Perhaps Elon Musk thinks Tesla can be the company that finally nails the robotaxi concept and there's more money to be made there than in a cheaper EV. We'll probably find out more in the coming weeks.

Source