As a technology company rather than a car company, it is not surprising that Tesla gave up the low-end car market

Just when everyone was looking forward to driving a Tesla , they didn’t expect Tesla’s reversal to come so quickly.
Last year, it was reported online that the Tesla Model Q (or Model 2) would be priced at only around 150,000 yuan. Until a week ago, many consumers were still discussing when the car would be launched. But in a recent earnings call, Musk made it clear that “there is no point in launching an ordinary $25,000 model. Yes, this is stupid and completely inconsistent with our beliefs.”

There are currently two different interpretations of this sentence. One is that Tesla hopes to launch a car model priced at $25,000 and equipped with advanced intelligent driving functions, rather than simply being cheap. The current majority opinion is that Tesla has canceled this project and will instead launch a low-priced version of its existing models. At the same time, it will fully promote a new self-driving taxi project, the Cybercab Robotaxi project.

It is worth mentioning that Jia Yueting, the founder of Faraday Future (FF), recently announced that he had obtained about $210 million in financing, which will be used to promote the creation of the second brand FX. At the same time, he also expressed his views on Tesla’s cancellation of the plan to evaluate electric vehicles at $25,000, saying that “if Tesla doesn’t do it, someone else must do it.” The FX brand will focus on cost-effective models, priced between $20,000 and $30,000, and provide two types of power systems: extended-range and pure electric, aiming to become the Toyota of the new energy era .

This also indirectly confirms that Tesla has indeed canceled its plan to build low-end electric vehicles. Although it is a bit sudden, it is actually not surprising for Tesla.

For a car manufacturing company, the role of launching cheap models is to seize more market share, but Tesla is not a car company in the traditional sense. I still remember that in the fourth quarter of last year, BYD surpassed Tesla with 526,409 electric vehicle deliveries, which caused heated discussions among many netizens. At that time, Musk expressed to netizens that “Tesla is an artificial intelligence /robotics company, not a car company.”