Ouch, things are getting complicated for the Tesla Model 2!

Industry analysts with access to extensive Tesla data estimate that the Model 2 will not appear before 2027… at best!

It’s not a good start for Tesla at the beginning of 2024. Sales are slowing slightly across all markets, social tensions are increasing, and supply chain disruptions and German environmentalists have shut down the Berlin factory for several weeks.

Factually, Tesla’s offering, which only caters to wealthy households with a catalog starting at €38,990 in France (-€4,000 per year!), limits the potential customer base. Price reductions are also nibbling away at operating margins. And unsurprisingly, competitors are sharpening their weapons and capturing more market share each day.

The urgency of an affordable model

Tesla has therefore urgently started developing a more affordable model nicknamed “€25,000.” This vehicle, approximately the size of a Peugeot 2008, was expected to be available by late 2025 or early 2026. However, American analysts are questioning this scenario, believing that the idea of a low-cost Tesla produced at 1 million units per year starting in 2026 is a fantasy. Instead, production would likely be closer to 500,000 units annually… and it would begin at best in 2027.

Furthermore. According to these leaks, Tesla is already considering launching this model in the United States rather than Europe, with manufacturing in Austin, Texas. The €25,000 car, dubbed “$28,000” on the other side of the Atlantic, would still be too expensive, and Tesla is now aiming for an entry price of $20,000.

To achieve this, major decisions are on the table: removing the glass roof and autonomous driving assistance features that add significantly to the manufacturing cost of a small car.

Will Tesla’s image be affected if the American automaker “reduces” itself to just another company? The primary argument would be the excellence of its range, with an objective of 250 miles or 400 kilometers.

Tesla is currently between “two waves of growth,” according to its CEO Elon Musk. The dip in the wave is growing with Model Y and Model 3 entering their second phase of life and thus of attractiveness. The Cybertruck is a phenomenon, just like the Model S and X. It’s tough for the world’s most valuable automaker.

Analysts are not fooled, and Tesla’s stock has already plunged 28.53% (as of March 12, 2024) since January 1, 2024. A valuation adjustment that ruins tens of thousands of shareholders’ investments.