Tesla's Rumored $25K Car May Not Be a Priority as Musk Refocuses on Autonomous Vehicles
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Elon Musk recently tweeted a link to Tesla's 2016 "Master Plan, Part Deux" which emphasizes autonomous vehicles over low-cost models. This suggests the rumored $25,000 "Model 2" may not be a priority.
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The 2016 plan states that a cheaper model than the Model 3 is "unlikely to be necessary" due to the cost savings of shared autonomous vehicles.
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Analyst Adam Jonas concedes Chinese EV makers are already making cheap models, so a Model 2 may not be as critical for growth.
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The Model 3 and Model Y are already fairly affordable with discounts and incentives, fulfilling the "affordable car" goal from the original 2006 plan.
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However, Tesla executives have recently discussed plans for a next-generation low-cost vehicle to be built in Texas, Mexico, and other locations. Its priority is unclear.