In 2017, Tesla Inc. TSLA didn’t quite have the same pull it does today.
The stock was heavily shorted, analysts were almost certain it would fail and even CEO Elon Musk wasn’t certain of the company’s future. The company was bleeding money and running on pipe dreams of mostly unfulfilled promises Musk made from his Twitter account.
There was one promise Musk did make and kept: building a quality, affordable, all-electric car for the masses. This resulted in the Tesla Model 3 rolling out in 2017 with a base price of about $35,000. Tesla slowly grew into the electric vehicle (EV) powerhouse it is today. Teslas have become increasingly expensive since then, with the cheapest model on the market costing about $43,000.
In September 2020, Musk made another bold promise to make a $25,000 car, increasing the affordability of EVs. Although this never came to fruition, Musk doubled down on his promise in 2021, lowering the promised price to $18,000. The realization of the affordable EV was supposed to occur at the March 2023 Tesla Investors day but it didn’t happen.
It seems Volkswagen beat Musk to making and affordable EV a reality with the release of its ID. 2all vehicle which is said to cost under €25,000 ($26,686). The vehicle is a small hatchback taking the throne as one of the cheapest EVs on the market. Previously, the Chevy Bolt held that crown with a price tag of about $28,000.
About the ID. 2all: Volkswagen has provided a glimpse into the future of its compact electric vehicles with the unveiling of the ID. 2all concept car. Boasting a range of up to 450 kilometers and a starting price below €25,000, the all-electric vehicle is set to hit European markets in 2025. The ID. 2all is the first of 10 new electric models Volkswagen plans to launch by 2026, in line with the company's accelerated electric offensive.
The ID. 2all features front-wheel drive and a spacious interior comparable to the Volkswagen Golf while remaining as affordable as the Polo. It also includes premium innovations such as Travel Assist, IQ.Light and an electric vehicle route planner. The production version will be based on the new modular electric drive matrix (MEB) Entry platform, which enhances efficiency in drive, battery and charging technology.
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Thomas Schäfer, CEO of Volkswagen Passenger Cars, explained the company's transformation to a "genuine Love Brand," with the ID. 2all exemplifying the combination of top technology and fantastic design. Board of Management member Imelda Labbé, who is responsible for sales, marketing and aftersales, highlighted the focus on customer needs and requirements.
Board of Management member Kai Grünitz, who is responsible for technical development, emphasized that the ID. 2all would be the first MEB vehicle with front-wheel drive, setting new standards in technology and everyday usability. Andreas Mindt, head of design at Volkswagen Passenger Cars, revealed Volkswagen’s new design language, which is based on the three pillars of stability, likeability and excitement.
The ID. 2all is a part of Volkswagen's commitment to an electric future. The automaker plans to introduce the ID.3, ID. Buzz with a long wheelbase, and ID.7 in 2023. A compact electric SUV is slated for a 2026 release. Despite challenges, Volkswagen is working on developing an electric car for under €20,000, with a goal of achieving an 80% electric car share in Europe.
See Next: Before Tesla was the powerhouse it is today, it was a startup trying to make it big. Now, anyone can invest in pre-IPO startups. For example, Qnetic is a startup pioneering a low-cost energy storage solution to unleash sustainable power.
See more on startup investing from Benzinga.
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