Part 6/14:
Amid Musk’s focus on autonomy, a key question arises: what about the smaller, affordable EV known as Model 2? Once envisioned as a compact, Volkswagen Golf-sized hatchback priced around $25,000, this vehicle was seen as a game-changer, especially in Europe and China. It could serve as both an entry-level car and a vital fleet component for Tesla’s future robo-taxi ecosystem.
Yet, internal discussions and recent decisions cast doubt on its development. In February 2024, Musk convened a high-stakes meeting to debate its future, ultimately deciding to cancel the Model 2. Instead, Musk pivoted entirely toward the development of autonomous robot taxis—vehicles that double as driverless ride-share units—cutting out plans for a smaller, mass-market model.