Elon Musk has typically held the position that the price range of Teslas will remain at current levels due to the increase in ride sharing making EV travel more accessible. According to recent reports however, Musk has conceded that “Teslas are not affordable.”

“It is important to make the car affordable. Like the thing that bugs me the most about where we are right now is that our cars are not affordable enough. We need to fix that,” Musk said.

Despite the introduction of the Model 3, which starts at $75k AUD, Musk has another idea to make his electric vehicle and clean energy company accessible to everyone.

Enter the Tesla Model 2. From 2023 Musk has confirmed the model, which is already being worked on, will unlock EV ownership for a new audience.

The car is reported to be taking on a shape of a European-style hatchback.

“We are confident that long-term we can design and manufacturer a $25,000 (USD) electric vehicle that will be compelling,” he said.

“This has always been the dream since the beginning of the company. Our first car was an expensive sports car, then a slightly less expensive sedan, and then finally a mass-market premium vehicle.

“But it was always our goal to make an affordable electric car.”

25 September 2020