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Reuters reported in April 2024 that Tesla had canceled its planned roughly $25,000 human-driven car, commonly called the Model 2. Elon Musk disputed the report, and Tesla did not publicly announce a cancellation naming the project. The later $25,000 Cybercab is a different proposition: Musk described it as having no steering wheel or pedals.
What was the planned Model 2?
“Model 2” was an informal name used by investors and fans for a proposed, all-new, lower-cost Tesla for human drivers. It was not a released vehicle or a finalized consumer model with a verified retail price. Reuters reported that Musk had told investors in January 2024 that production was planned for Tesla’s Texas factory in the second half of 2025, with an expected starting price of about $25,000. Those were targets for the proposed car, not a confirmed price or launch.
In its April 5, 2024 report, Reuters said three people familiar with the matter described a decision to cancel the project. It also cited company messages it had reviewed, including a March 1 note from a program manager telling staff that “suppliers should halt all further activities related to H422/NV91.” Reuters identified those as internal and external codes for the affordable-car program.
Musk responded on X, “Reuters is lying (again).” Reuters reported that he did not identify a specific error in its account. Tesla did not issue a detailed public announcement naming the Model 2 and confirming its cancellation. The careful conclusion is that the cancellation was reported by Reuters and publicly disputed by Musk, rather than formally explained by Tesla in a named-project announcement.
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What changed after the cancellation report?
Tesla’s April 2024 update
On April 23, 2024, Tesla said it would bring more affordable models forward using its current platforms and production lines. The company said this approach could enable more capital-efficient volume growth, while cautioning that it “may result in achieving less cost reduction than previously expected.” The update did not say that the original all-new Model 2 was back on track or give a price for these more affordable models.
The Associated Press reported that Musk expected production of the more affordable models might begin in the second half of 2025, “if not late this year.” That was an expectation, not evidence that production began or that the original Model 2 plan resumed.
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The Cybercab is not the conventional Model 2
In October 2024, Musk called a regular $25,000 car “pointless” and “silly.” He described the Cybercab as a roughly $25,000 car, adding, “It just won’t have a steering wheel and pedals.” His comments concerned an autonomous concept, not a conventional EV intended for a person to drive. They do not establish that a retail Cybercab launched at that price, or that Tesla renamed the Model 2.
Is Tesla developing another smaller vehicle?
A Reuters report reprinted by Kuwait Times on April 10, 2026, described supplier discussions about a separate, smaller SUV project. The account characterized the work as early-stage. Reuters could not determine whether Tesla had approved production or whether the vehicle would be for human driving, autonomous use, or both.
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- 5.9 inch x 2.2 inch x 1.8 inch(size)
- The two sides of doors could be opened,front and back covercould be opened too
- You can pull back the car,then it can move forwards with Lights and Sound
- Very suitable as children 4 years and up toys for birthday,Christmas gift, new year. Also it can be a gift for your boyfriend
That report does not confirm a Model 2 revival. It established no launch date or price, and the supplier discussions alone do not show that the SUV has been approved for production.
How the proposed vehicles and plans differ
| Plan or vehicle | What it refers to | What is established |
|---|---|---|
| Proposed Model 2 | All-new, lower-cost car for human drivers | Reuters reported its cancellation in April 2024, based on sources and company messages. About $25,000 and second-half 2025 production were reported targets before that report, not a confirmed retail offer or launch. |
| More affordable models announced in April 2024 | Vehicles using current platforms and production lines | Tesla said it would accelerate these models, while warning of potentially less cost reduction than expected. The update did not identify them as the original Model 2 or state a price. |
| Cybercab | Autonomous concept described by Musk in October 2024 | Musk described a roughly $25,000 vehicle without a steering wheel or pedals. That was a description of the concept, not evidence of a launched retail car. |
| Smaller SUV in 2026 reporting | Separate early-stage project discussed with suppliers | Reuters could not establish production approval, intended driver configuration, timing, or price. |
Why was the reported plan dropped?
Reuters placed the reported decision amid competition from lower-priced Chinese electric-vehicle makers and the difficulty of building entry-level cars profitably. It also said its sources did not know all the reasons for the decision. Those factors provide context, not a complete explanation officially confirmed by Tesla.
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- The two sides of doors could be opened,front and back covercould be opened too
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- Very suitable as children 4 years and up toys for birthday,Christmas gift, new year. Also it can be a gift for your boyfriend
Reuters also reported that the affordable-car project and robotaxi work shared a small-vehicle platform, while robotaxi work continued. That connection does not mean the planned human-driven car simply became the Cybercab: the vehicles described by Musk have different intended uses and configurations.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can you buy the Model 2?
No released Model 2 with a verified retail offer is established by these reports. The roughly $25,000 figure belonged to the reported plan and later to Musk’s description of the Cybercab concept; it is not a confirmed price for a purchasable human-driven Tesla. The 2026 smaller-SUV account likewise describes an uncertain project, not a vehicle on sale.
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