Tesla fans and the EV world were abuzz when rumors surfaced about a budget-friendly “Model 2″—a sub-$25,000 Tesla aimed at delivering mass-market electric mobility. Some speculative reports even touted a jaw-dropping price of$10,979, promising to revolutionize the auto industry.

But as events unfolded, Elon Musk’s stance shifted dramatically, pivoting away from the affordable Model 2 to focus instead on robo‑taxis and autonomy. This investigation digs into what really happened, why the Model 2 was dropped, and what the future holds for mainstream electric ownership.

The Promise of the Model 2—and the $10,979 Myth

Early speculation suggested Tesla was developing a compact, affordable EV dubbed “Model 2,” targeting a starting price below $25,000 . Enthusiasts and some outlets pushed the narrative even further: one speculative site claimed Tesla would sell Model 2 for$10,979, reducing net customer cost to as little as $3,500 with incentives

These claims were never substantiated by Tesla. In fact, reputable sources suggested possible starting prices ranging from mid‑$20,000s to upper‑$30,000s, depending on production efficiencies  The $10,979 figure was promotional hype—not a grounded projection.

Strategic Shifts: Musk Abandons the Model 2 for the Cybercab

Reality struck in April 2024 when Reuters reported Tesla had>canceled its low-cost Model 2 plans, redirecting engineering focus torobotaxis, the autonomous future that Musk sees as crucial . Despite initial denials—including Musk calling the report “lying”—later comments revealed a firm strategic pivot.

On the October 2024 earnings call, Musk described building a $25,000 human‑driven car as “pointless” and “silly,” reiterating that Tesla no longer intends to make a non‑robotaxi model. Instead, Tesla’s upcoming Cybercab—a two-seater, fully autonomous robo‑taxi—will cost around $25,000 and enter production in 2026

Internally, Musk reportedly declared that Model 2 represented “traditional thinking,” asserting Tesla’s future lay in AI and robotics

Community and Analyst Reactions

Some analysts, like Morningstar’s Seth Goldstein, had hoped for more affordable EVs built on existing platforms at mid‑$30,000s—not radically new architectures Tesla’s shift disappointed those two waves of growth envisioned: the first with Model 3/Y, the second with Model Reddit debates echo this sentiment. One user noted Musk’s earnings call response seemed evasive:

“All vehicles we presently produce and will produce in the future are Robotaxi‑capable. We are not going to make a vehicle that is not Robotaxi‑capable.”

Despite the shift, Tesla’s roadmaps still hinted at “more affordable models” launching in the first half of 2025—though under unspecified names or platforms

Why the Pivot?

Several compelling reasons explain Tesla’s strategic U-turn:

Cost and CompetitionChinese EV brands flooded the market with low-cost models (~$10,000 range), intensifying price pressure . Building a new platform for just sub-$25,000 proved financially risky amid this landscape.

Manufacturing Efficiency>Tesla sought cost savings using existing lines and higher volumes, avoiding massive investments in a new platform

Futuristic Vision
Musk’s bullish take on autonomy frames the Cybercab as the future—robotaxis, not electric sedans, are where Tesla should lead.

What About Future Affordable Teslas?

Though Model 2 is officially scrapped, Tesla’s roadmap isn’t blackout:

More affordable versions of current models are still planned, potentially launching in 2025

Tesla’s next-gen platform, featuring innovations like “Unboxed Process,” 48V architecture, structural battery pack, and large single-unit casting, is under development for mass production

Anticipated rollout may come via incremental cost reductions in Model 3/Y lines, rather than a standalone low-cost model.

In summary: the sensational claim of a $10,959 Tesla Model 2 for the masses was a mirage. Tesla has formally abandoned the idea of a non-autonomous Model 2, pivoting decisively toward the , scheduled for 2026 production

However, the promise of more affordable Teslas hasn’t vanished entirely—it’s just evolving. Expect cost-cutting iterations of existing models in 2025, enabled by Tesla’s cutting-edge manufacturing and next-gen vehicle architecture.