Tesla may not unveil its $25,000 Model 2 car till 2024: Report

Elon Musk-owned Tesla was previously reported to be working on a $25,000 Model 2 car. At Tesla Battery Day in 2020, CEO Elon Musk confirmed that the electric vehicle company will develop a $25,000 electric car.

However, according to a report by Electrek, the company is not working on its $25,000 electric car at the moment. The report quotes the company CEO Elon Musk saying that Tesla is currently not working on the car.

“Well, we’re not currently working on the $25,000 car. At some point, we will, but we have enough on our plate right now, too much on our plate, frankly. So, at some point, there will be,” the report quotes Elon Musk when asked by shareholders about the status of the $25,000 Tesla electric car at the company’s Q4 2021 earnings.

Another report by Teslarati confirms the same. In the report, TSLA analysts at Loup Ventures predict that the Model 2 will be released in 2024.

"Tesla will wait until 2024 to announce Model 2," Loup Ventures stated in its 2022 Predictions letter. "If the company announces the lower-price[d] car too early, they risk slowing sales of Model 3 while ramping capacity during what is likely to be a broader auto recession,” it says.

As per the report, Tesla's Model 2 preview could be released in early 2024, while the production may start in mid-2025. The report further suggests that the Model 2 is likely to be a compact car or a subcompact vehicle.

Meanwhile, Tesla has also announced exclusive incentive offers for its vehicle buyers. The company is offering Model 3 sedan and Model Y sport utility vehicle buyers as much as 10,000 yuan ($1,450) if they take delivery by February 28. In addition, the carmaker is also extending a 6,000-yuan subsidy it started offering in early December, and the other 4,000-yuan subsidy tied to purchasing insurance through Tesla was first introduced in November. According to Bloomberg news, these offers are aimed at popping up sales in China.