2024-04-10 06:05:01
Tesla would not have seen Chinese competition coming
Tesla, which had long promised an affordable electric sedan aimed at democratizing access to electric vehicles, finally abandoned this project called Tesla Model 2. The information was revealed on April 6, 2024 by Reuters, whose journalists spoke with three sources close to the matter, as well as through internal company documents. This decision marks a significant turning point for the company, which envisaged this inexpensive car as a major growth lever to establish itself as a mass automobile manufacturer.
Tesla’s regarding-face can be explained by the emergence of Chinese competitors offering electric vehicles at unbeatable prices, sometimes as low as $10,000. This situation highlighted the difficulty for Tesla to maintain its price ambitions while ensuring profitability and production quality that meets its standards.
Elon Musk denies the end of the Tesla Model 2 program
The abandonment of the low-cost car project by Tesla reflects the profound transformations of the electric vehicle market, now characterized by fierce competition, particularly from Chinese manufacturers. The latter, thanks to aggressive pricing strategies, have managed to carve out a significant share of the market, challenging Tesla’s dominance.
Despite Elon Musk’s claims refuting allegations that the project would be canceled, Tesla’s decision to withdraw from the low-cost electric vehicle segment raises questions regarding its future strategy. While some see it as a prudent measure to preserve margin and quality, others are concerned regarding the long-term impact on Tesla’s ability to compete in an increasingly accessible market.
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