EV/Lithium, page-16

* What does this likely to mean?
> If Tesla pulls out from an earlier plan to introduce a cheaper Model 2 version, this makes EV price high (relative to ICE vehicles) that won't enable mass adoption
> The US would prevent China EVs from entering the US market either via excuse of data infringement (Biden) or tariffs (Trump)
> Ford and GM have both expressed stepping back from EV , preferring hybrids now
> All the above would stymie US EV growth to be a lot lower than originally projected, enabling hybrid to thrive and grow stronger and ICE vehicles to continue as is.

This was the post in mid Feb that provided advanced caution re: hybrid prominence in US
Its Over, 72469867, page-20280 | HotCopper Forum


Some thoughts on the Reuters story on Tesla scrapping the low-cost Model 2:

1. The story appears to be credible, despite Elon’s denial. Let’s not forget that Tesla stock price has been dropping for a while now. If he came out confirming the news, that would sent the price spiraling down.

2. Scrapping Model 2 is likely due to Tesla’s inability to compete with cheap Chinese models. BYD already released its Seagull model for $10k. Tesla wanted to price its car at $25k. There was no way for Tesla to dominate the cheap electric car segment.

3. Elon has been talking about the Model 2 for years. By 2024 Tesla was already late, as cheaper alternatives are flooding the market. This is possibly Elon cutting his losses and focusing on FSD and robotaxies as the next profitable products.

4. It remains to be seen if the company’s focus on Cybertruck was a strategic mistake. But it is not far-fetched to think that if Tesla focused on Model 2 before working on Cybertruck, they would’ve been able to reach market faster.

https://x.com/smajicdr/status/1776297388476403996