Tesla's upcoming entry-level electric vehicle, the Model 2, will be used predominantly in autonomous driving mode, according to the company's CEO, Elon Musk. The highly anticipated EV, which was first announced in 2020, is being developed with a targeted price tag of around $25,000. Although details about the car were not announced during Tesla's recent Investor Day, Musk provided some information during a recent interview at the Morgan Stanley Conference.
"There is a clear path to making a vehicle, a smaller vehicle, that is roughly half the production cost of our Model 3," Musk said. "That vehicle will be used almost entirely in autonomous mode. The thing that is gigantic for Tesla is autonomy. And people that have used the Tesla Full-Self Driving and have seen how rapidly the Full-Self Driving capabilities has been evolving, it should be obvious that that is the most profound thing [for the carmaker]."
Musk also pointed out that passenger cars are typically used for only 10-12 hours per week, but if vehicles were completely autonomous, they could be used for 50-60 hours per week. "That’s a 5x in the value of a car and it costs the same to make the car," Musk added. "At that point, you basically have software margins in a hardware product."
Musk's comments suggest that the Model 2 could be a game-changer for Tesla's long-promised 'robotaxi' service, which would allow Tesla owners to rent out their vehicles when they don't need them. Given that the Model 2 will be affordable and could establish itself as Tesla's best-selling model, it's safe to assume that many owners will advertise their cars on the robotaxi service.
It's important to note that Elon Musk has made a number of audacious claims about Tesla's self-driving capabilities over the years, so his statement should be taken with a grain of salt. However, if Musk's predictions hold true, the Model 2 could mark a major shift in the automotive industry towards autonomous driving and car-sharing services.
Source: Carscoops
