Tesla weighs a cheaper, smaller EV as Model 2 plan reemerges

Reuters reports Tesla is calling suppliers to build a new, standalone affordable electric SUV not based on the Model 3 or Model Y, with production slated first in China and then in the US and Europe, a major reversal for Elon Musk who once said cheaper EVs were pointless. The move follows the 2024 cancellation of a $25,000 “Model 2” and the release of stripped‑down Model 3/Y variants, and it raises questions about whether the new vehicle will be driverless or human‑driven as Tesla’s FSD progress continues to face hurdles.