Tesla's $25,000 Car, Dubbed Model 2, Likely Arriving In 2023: Report

Tesla Inc.'s TSLA long-rumored $25,000 car could be launched as early as 2023, adding one more vehicle model to its lineup.

What Happened: Tesla is planning to start production of the $25,000 budget model car, widely referred to as Model 2, in 2023, CEO Elon Musk allegedly told employees at a company-wide meeting, Electrek reported.

Musk also suggested that with the launch of the car, Tesla hopes to achieve a deployable full self-driving system, the Electrek report stated.

Musk presumably asked employees whether they would want the car to come with a steering wheel and pedals. This was construed as meaning the new car may come without a steering wheel.

Incidentally, at the company's Autonomy Day in April 2019, Tesla had released a picture of a vehicle without a steering wheel and pedals. Musk had said then the company aims to release such a car within two years.

Musk has previously hinted that the $25,000 price point is doable with Tesla's in-house cell and manufacturing technology that could drive down battery costs by 50%.

Related Link: Tesla's Ad Spending May Go From Zero To Meaningful In 2025: How Will Margins Be Impacted?

Why It's Important: Even as EV adoption is on the rise, an acceleration in uptake can be achieved by making cars affordable to buyers.

A case in point is the strong sales of the Hongguang Mini EV in China.

This EV, manufactured by Chinese state-owned automaker SAIC, along with General Motors Company GM and Wuling, is priced at $4,500 is far outpacing sales of other EV makers in China.

At last check, Tesla shares were down 0.32% at $730.03.

Related Link: Tesla's Model Y Makes News, Here's Why

Image: Courtesy Tesla, Inc