Tesla Provides Update on 'Model 2', Its $25k Car, During Earnings Call

Tesla's gives an update on its upcoming more affordable vehicle

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The third-quarter earnings call for Tesla offered intriguing insights into the direction and focus of the company's upcoming next-gen vehicle, dubbed the Model 2 or the $25,000 car.

While drawing on a comparison to Cybertruck's production challenges, Elon Musk declared this vehicle will be more conventional for production with the overarching goal of achieving an unmatched level of manufacturing efficiency.

Functional Beauty: The Aesthetic Vision

The next-gen car is predicted to be the most produced car in Tesla's lineup, with the potential scale and reach of the Model 2, with implications suggesting it could match the combined volume of other Tesla models. The "high-volume, low-cost" will be simpler in design and technological features to achieve a production speed unprecedented in the auto industry. The mention of achieving "units per minute level that is unheard of" paints a picture of Tesla's commitment to scale and affordability.

Breaking away from the enchantment often associated with Tesla vehicles, Musk set the stage for a different kind of vehicle in the Model 2. Described as "utilitarian," this new vehicle won't be about enchanting consumers but serving a functional purpose. Despite this, Musk reassured that the car will still bear Tesla's signature beauty.

The Quest for Affordability

A dominant theme throughout the call was the relentless push towards reducing costs and improving operational efficiencies. Vaibhav Taneja, Tesla's Chief Accounting Officer, pointed out the myriad challenges and variables in managing product margins, especially given the ongoing factory upgrades.

Nevertheless, company representatives remain unwavering in their dedication to cost reductions for 2024, showcasing Tesla's commitment to affordability. As Taneja describes, this "cost attack" strategy involves meticulous examination and improvement of every line item, highlighting Tesla's dedication to affordability at every turn.

Musk equated their cost-reduction strategy to a "Game of Thrones" where even saving pennies mattered. Musk highlighted the importance of such savings, highlighting how even small elements, like unnecessary internal stickers or QR codes, are being scrutinized for their contribution to the vehicle's cost.

Driving down the costs for the Model 2 isn't just about large-scale production adjustments; it's about scrutinizing every tiny detail. Musk illustrated the cost anatomy of a vehicle, emphasizing the challenge of saving even $0.40 on each of the approximately 10,000 parts in a car.

What This Means for Model 2

All these cost-saving strategies are directly tied to Tesla's aspiration to introduce the Model 2 at an unprecedented price point. By focusing on "pennies" and being "ruthless" in their cost-cutting measures, Tesla is gearing up to deliver a vehicle that doesn't just promise efficiency and sustainability but also unparalleled affordability.

The road to the Model 2 is evidently layered with challenges. Still, if there's one takeaway from the earnings call, it's that Tesla is more committed than ever to making the dream of an affordable electric vehicle a reality for the masses.

Tesla Says 12V Power Socket Access Will Not Return With Sentry Mode

Not a Tesla App

It turns out that the big undocumented change in Tesla update 2024.32 that disables the 12V power and USB ports while Sentry Mode is active is not a bug but an intentional change.

A fan contacted Tesla Service to see if the change was intentional and what the reason behind the change was. Surprisingly, they received a response pretty quickly.

No 12V Power Access

Tesla has decided to restrict 12V power access for safety reasons—namely, to “reduce the likelihood of thermal events” when third-party devices are left powered on without users present. Tesla reached out to the fan in question by phone, and they seemed to be sticking to that line.

It seems that Tesla is resolute that it was due to safety reasons and that the change would not be “fixed” or allowed in a future software update – as this was an intentional change for safety reasons.

Other sources have reported that the change was due to potential misuse of the 12V power access, with people wiring 1200w microwaves and kettles or jury-rigging 240v to 120v adapters, which had apparently been the cause of multiple fires in Tesla vehicles within China.

Workarounds

Thankfully, for those who camp or need to keep their sub-trunk fridges powered while still having security in their vehicles, there is a simple, although inconvenient, workaround. You can enable Camp Mode, then manually lock your car (since Camp Mode turns off walk-away door locking) and turn off climate controls from the app.

While Sentry will NOT be active with this workaround, the car's power sockets remain powered. While this workaround is fine to use occasionally, it’ll be tiresome for those who use a fridge regularly.

We’re still hoping Tesla considers bringing the Cybertruck’s Power Control menu to the rest of its vehicles and is somehow able to limit the max draw from these outlets to prevent dangerous situations.

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Join Our Tesla Robotaxi Event Prediction Contest

Tesla

With the Robotaxi event just a day away, we thought it would be a fun idea to run a contest to predict what Tesla will announce tomorrow evening.

We’ve outlined a list of questions below; simply answer them on our forums or social media (X or Threads), and be entered for a chance to win some great prizes.

The individuals who have the most correct answers will win one of five prizes mentioned below. If more than five people get them all right, a random drawing will be held from the pool of winners.

We’ll reach out to the winners either by email or by DM on social media.

The Questions

1. Will Tesla let attendees experience Robotaxi at the event?

2. Will Tesla first start the network with human supervision (ridesharing), or with Robotaxis only?

3. What year will the network start? When will it become fully autonomous? (if announced)

4. When will Robotaxi production begin? (if announced)

5. Will it be Robotaxi or Cybercab?

6. Which of these Robotaxi Concepts will be the closest to the one announced?

7. Will Robotaxi include:

   1. Front-facing camera?

   2. Stainless-steel body?

   3. Steer-by-Wire or No Steering Wheel? (if announced)

   4. Which current Tesla model has the most similar door-opening mechanism?

   5. How many seats will the robotaxi have?

8. Will the robotaxi include AI5/Hardware 5, HW4 or something completely different?

9. Where will Tesla’s first Rideshare/Robotaxi location be established?

10. Will customers be able to purchase a Robotaxi?

Requirements

Please use the template below to answer the questions on social media or in our forums. You can post your answer as a comment to our forums, to our X post, or to our Threads post.

Once you do that, repost or quote post your favorite article from us.

1. Yes

2. Ridesharing

3. 2025/2027

4. 2025

5. Cybercab

6. Dominic's

7. Yes, Yes, SBW, No, 2

8. HW5

9. LA

10. Yes

Prizes

Prizes are generously provided by Enhance and Jowua, makers of some of the best Tesla accessories and amazing Tesla community members. Prizes will be mailed out directly by them. Winners will get to choose their prize from the list below. First place will have the first pick and so on. There will be five winners in total.

• S3XY Buttons (including a commander and wiring)

• S3XY Knob for Model 3/Y

• Tesla Gaming Controller - Multi-Device Wireless Controller (Wireless Charging)

• Tesla Gaming Controller - Multi-Device Wireless Controller (Wireless Charging)

• Tesla Gaming Controller - Multi-Device Wireless Controller (Wireless Charging)

Disclaimer

This is a Tesla event, and Tesla normally likes to hold their cards close to their chest. If an answer is ambiguous, we’ll go with the best choice decided by our staff. We’ll do our best to be fair. This

With all that said, we wish our entrants the best of luck, and we’ll announce the winners at the end of the week.

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