[Rumor Risk Rating]
⚠️ Insufficient Evidence
The status of Tesla’s $25,000 “Model 2” remains unclear based on conflicting reports and statements. According to Reuters reporting from both April 2024 and more recent June 2025 coverage, Tesla had internally canceled plans for the affordable $25,000 vehicle, which was sometimes referred to as the “Model 2″[2][3]. However, Elon Musk publicly denied this cancellation on April 5, 2024, posting “Reuters is lying” on X (formerly Twitter) after the initial report surfaced[3][4].
The latest information from June 2, 2025 suggests significant internal confusion at Tesla regarding the project’s status. Senior executives were reportedly alarmed when Musk publicly denied the cancellation despite having already informed employees that the project had been shelved weeks earlier[4]. When executives asked Musk if he had changed his mind following his public denial, he reportedly confirmed to them that “the project was still dead”[3].
Instead of pursuing the $25,000 Model 2, Tesla appears to be shifting focus toward more affordable versions of its existing Model 3 sedan and Model Y compact SUV[3]. This strategic pivot has reportedly sparked internal debates among Tesla executives about the company’s direction in the EV market.
It’s worth noting that Tesla has a history of shifting timelines for its projects, as seen with the Cybertruck which took five years from announcement to delivery[3]. Without official confirmation from Tesla about the project’s cancellation or continuation, and with contradictory statements from Musk, the true status of the Model 2 remains uncertain.
The lack of clarity is further highlighted by a YouTube video from May 17, 2025, with a title suggesting Musk was announcing a $11,179 Model 2 for 2025, though the content’s reliability is questionable as the video creator mentioned calling a Tesla dealership that had no knowledge of such a vehicle[1].