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Tesla Robotaxi Launch Raises Questions About Model 2’s Cancellation

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Photo: Michael Johnson for EV Media

Tesla’s highly anticipated Robotaxi was unveiled during the “We, Robot” event at Warner Brothers Studios in Burbank, California. While the futuristic vehicle impressed attendees with its sleek design, many were left wondering how it compares to the long-rumored Tesla Model 2. The Robotaxi, positioned as a fully autonomous electric vehicle, offers minimal seating and streamlined interiors, optimized for quick cleaning and low maintenance.

Initially intended to provide an affordable EV at around $25,000, the Model 2 project was quietly shelved. Tesla pivoted toward developing the Robotaxi, citing the potential profitability of autonomous fleets. With a target price near $30,000, the Robotaxi is expected to offer better margins by focusing on autonomy rather than personal ownership. Elon Musk emphasized the need to push toward a driverless future, framing Robotaxi as essential for Tesla’s growth strategy.

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However, some analysts believe the decision to prioritize the Robotaxi over the Model 2 may be premature. Competitors like Waymo and Cruise have already launched driverless fleets, albeit with mixed results. Tesla’s plan to enter this space raises concerns about meeting both regulatory and technological milestones for full autonomy, a feat the company has yet to achieve.

Critics argue that the Model 2, as a human-driven entry-level EV, might have served a broader market faster and more reliably. There are concerns that Tesla’s focus on robotaxis could leave consumers without an affordable EV option, especially as Chinese manufacturers increase their presence in the U.S. market with low-cost alternatives.

Despite the excitement surrounding the event, skepticism lingers about whether Tesla can deliver a reliable, fully autonomous fleet within the proposed timeline. Many observers remain cautious, given Musk’s history of overly optimistic promises about self-driving technology.

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