Tesla has scrapped plans for a brand new ‘Model 2’ entry-level electrical automobile, Reuters experiences.

The long-promised new mannequin line, which boss Elon Musk lately prompt may enter manufacturing late subsequent 12 months, was tipped to return to market at lower than £25,000 as a rival to the likes of the Volkswagen ID 2, Renault 5 and MG 4 EV.

Citing three sources accustomed to the matter and inner firm messages, Reuters says the project has been scrapped and the platform that was to underpin the EV will now be used for a line of autonomous robotaxis, produced at a lot decrease volumes.

Tesla refused to remark when approached by Autocar and Musk responded to the report with a submit on his social media platform, X, that learn merely: “Reuters is dying”.

Tesla has lengthy hinted at plans for a cut-price new automobile to sit down beneath the Model 3 saloon and Model Y crossover however has solely given restricted indications of its positioning over the previous few years.

Most lately, the agency launched a shadowy teaser picture of its silhouette, suggesting it will successfully be a downsized tackle the Model 3.

The American agency spoke of formidable plans to promote an astonishing 700 million examples of the automobile, codenamed Project Redwood, over its lifetime.

Tesla’s transfer away from the cheaper finish of the EV market comes at a time when inexpensive Chinese cars, such because the BYD Dolphin, are arriving within the UK. 

Crucial to the Model 2’s viability was a brand new manufacturing course of known as Unboxed, which primarily revolves round lowering the quantity of labor achieved at every stage of the manufacturing line, avoiding any pointless motion or disassembly of the automobile or its parts throughout its journey down the manufacturing line.

For instance, the seats can be mounted on to the underfloor battery pack, with all the unit then raised right into a bodyshell that has been painted in sections to keep away from the necessity for door removing and reinstallation.

Initial manufacturing for the Model 2 was tipped for Germany. The automobile’s platform was considered unrelated to different Teslas.

Reuters suggests this manufacturing course of and the platform to which it applies will as an alternative be deployed for Tesla’s long-mooted autonomous ride-hailing car – which will not be produced in the identical colossal volumes.

It quotes a supply as saying “Elon’s directive is to go all in on Robotaxi”.