Okay, Robotaxi looks cool. But how is this better than Model 2?
Tesla’s Robotaxi event came and went last night, and we finally learned (very few) new details about the much-hyped car that CEO Elon Musk thinks will add $5 trillion to Tesla’s market capitalization.
But the main thing it left me (still) thinking is: why does this car even exist?
Tesla has been talking about robotaxis for a long time, so of course it makes sense that it would unveil a robotaxi… right?
But here’s the rub: when Tesla first started talking about robotaxis, it was in the context of the Model 3 and other vehicles that the company already makes.
As far back as 2016, Tesla was talking about “Tesla Network,” a proposed system that would allow Tesla owners to send out their cars to work as taxis once the company had solved full self-driving.
I mentioned all of this in my Tesla Model 3 review back in 2018, showing some of the details that indicated that Tesla was getting ready for this robotaxi future – such as the use of a phone as a key and an interior camera to keep tabs on occupants.
And this wouldn’t just be applicable to certain vehicles, but to all cars that Tesla makes. Because Tesla also said that all its cars come with the hardware for full self-driving as early as late 2016.
Musk even went so far as to say that Tesla will stop selling cars once it solves autonomy. The idea is that those cars would be more profitable to keep around as robotaxis, that each would be worth $100k-$200k due to this function and that they should be considered “appreciating assets” as a result. (Though Musk did say last night that Tesla will sell Robotaxis for $30k, which runs counter to this past assertion of his).
So there is a long history of Tesla referring to its vehicles as potential future robotaxis, rather than talking about an individual robotaxi product. And it even said the same last night, as there were 20 Robotaxis and 30 other Tesla vehicles shuttling people around at the event. Musk reiterated last night that all cars Tesla makes would be capable of full autonomy, and even said that existing cars would be driving all by themselves prior to when he said the Robotaxi will hit the road in 2026-2027 (though he stumbled and said “let’s not get nuanced here” when the crowd asked whether this would apply to HW3 cars, which Tesla previously promised full autonomy for).
But hey, maybe it makes sense to release an individual Robotaxi product that would be fully focused on this function and no other, in order to save cost and reduce complexity.
That’s certainly an argument, and Tesla’s announced $30k starting price for the Robotaxi/Cybercab product (even Musk seemed unsure which name to call it) is a lower price than any vehicle the company has sold yet, and among the cheapest price we’ve ever seen for an EV (shout out to the all-time value winner, the now-defunct Chevy Bolt).
Also, I have to say, it looked great out there. Compared to the previous renderings/models/spy shot we’ve seen, I thought the final product looked fantastic. If it were just a normal EV, with that design, a small sporty low 2-seater for about that price, I’m sold.
A smaller car, without many of the creature comforts that might be desired by a driver, with more simplicity for less maintenance and easier cleaning, can certainly help to get costs down. And that’s great and needed. A $30k vehicle will be available to more people than a $42k Model 3, the next-cheapest car Tesla currently sells.
But…. why not a $25k Model 2 then?
Tesla already had the answer to this question: the cancelled Model 2
So if Tesla wants to have a cheaper, simpler car that is capable of robo-driving tasks, and if it’s still clear that all of its vehicles will gain this capability, why doesn’t it just make the cheaper, simpler car that it’s been talking about for years: the Model 2.
Not much was known about the Model 2, except that it would be a cheaper, smaller EV, starting at $25,000 – long thought to be the appropriate entry-level for consumer vehicles (the cheapest gas cars in America are around $17k – and a $25k EV would cost about the same after the $7,500 federal tax credit).
But earlier this year, it was reported that Tesla was shutting down Model 2 development. Musk denied that report, but like many of Musk’s denials, it turned out to be true.
Instead, Musk directed the company to pivot to Robotaxi, and rhetorically, he has been talking a lot more about robotaxis, artificial general intelligence robots, and various other pie-in-the-sky promises, in keeping with the tech buzzword du jour..
But while there’s a lot of demand in the stock market for CEOs who incessantly talk about AI, there’s also a lot of demand in the car market for a cheap electric vehicle. And Tesla is a car company, after all, not a stock company (isn’t it?).
And what we do know from the event is that Tesla thinks they can make a self-driving electric vehicle for under $30k, and that that vehicle would be “over-specced” for what it is, using a more powerful AI computer than necessary. And they think they can do this within the next 2 years or so.
If these two things are possible, I believe that those efforts would be better channeled towards the Model 2, rather than the Robotaxi.
While Musk stated in the event that existing vehicles would be capable of full autonomy before the Robotaxi starts shipping, I don’t think anyone believes this. After a decade of FSD coming “at the end of next year,” the boy has thoroughly cried wolf and this timeline does not seem realistic.
Further, Musk said that it would come to California and Texas first, pending regulatory approval. Even if Tesla does swiftly get regulatory approval in those states, that still limits the addressable market while it works to scale up and get approved in other regions. The process of homologating a Model 2 would go much more smoothly than that, and could be sold globally much faster.
And while Tesla’s car timelines also tend to slip by several years, with how long we’ve been talking about a “cheaper Tesla car” and its relative similarity to existing vehicles (as opposed to the vast differences involved in making a Cybertruck or Roadster), I also think the Model 2 could have been manufactured before Robotaxi could (especially when taking into account regulatory timelines).
If that’s the case, then wouldn’t it be better for Tesla to make this car that I believe would be ready before Robotaxi will, that will fulfill a need for a lot of buyers right now (especially in a circumstance where affordable Chinese EVs are popular enough to force protectionist trade measures), that would have global appeal, and that will have all the capabilities of a Robotaxi once (or if) FSD finally ever gets solved?
Maybe it’s about cost-cutting… or maybe it’s about the stock
Now, perhaps part of the reason for Model 2’s cancellation is because Tesla did not see enough cost-cutting possible to build an EV for $25k, or thought the level of cutting would be too severe to sell desirable consumer vehicles at that price. With a Robotaxi, perhaps customers would accept a more bare bones experience than in a Model 2 that they own as a personal vehicle, and maybe that’s the only way that Tesla can get the price down.
And there’s something to be said for a vehicle that’s fully autonomous-focused, with things like inductive charging and being designed for robo-vacuums to clean the car without human intervention (both were briefly glossed over in last night’s presentation).
But there’s definitely demand for a cheaper, human-driven EV, and I think Tesla got the order wrong on this one – it would be better to sell a bunch of Model 2s earlier than a bunch of Robotaxis later, since I don’t think full level 5 FSD, along with regulatory approval, is coming within the next year or two. And if you have to choose whether to have hardware or software ready first, you definitely want to choose software – because hardware costs a heck of a lot to build.
Or… maybe all this AI talk is more about the stock than it is about actual products, as alluded to above. This has been a common theory among Tesla haters for some time, but was never all that realistic because Tesla did and does sell a lot of cars, and a whole ecosystem around them of energy products like Powerwall and Superchargers, which work well and make a lot of revenue, with pretty good margins.
But when Musk suggests that Robotaxi will be worth $5 trillion in market cap, when he goes on a months-long rampage at the company to sell his own stock grant package to shareholders, and when he goes on about long-term dreams and how Tesla is going to change the world in 6 huge ways next year alone (really next year this time, I promise), that feels less like a mature and achievable product timeilne and more like a set of actions that are driven by a desire to, let’s say, make up for a really bad personal business decision that he funded on the back of TSLA’s formerly-high share price.
But if it is about that, it seems that Elon has run out of rope. The market, this time, doesn’t seem too convinced. Maybe instead of sky-high promises that nobody thinks will be met, and that you are burning public trust with each time you make them (or uh, maybe that’s happening for another reason)… people really do just want a cheaper car that everyone can buy.
Make it.
Charge your electric vehicle at home using rooftop solar panels. Find a reliable and competitively priced solar installer near you on EnergySage, for free. They have pre-vetted installers competing for your business, ensuring high-quality solutions and 20-30% savings. It’s free, with no sales calls until you choose an installer. Compare personalized solar quotes online and receive guidance from unbiased Energy Advisers. Get started here. – ad*
FTC: We use income earning auto affiliate links. More.
In a discussion on the increase in crime committed by individuals riding electric motorbikes, the Hampshire Police and Crime Commissioner, Donna Jones, has claimed that a certain style of bike is being used “almost exclusively” for criminal actions.
Jones, a British Conservative Party politician, made the claim in reference to Sur Ron-style electric motorbikes, which resemble something fitting between a small dirt bike and a large electric bicycle.
These vehicles, which can often reach around 50 mph (80 km/h), are technically not electric bicycles but rather small electric motorcycles. They are designed primarily for use on off-road trails and other non-street uses, meaning they are rarely street-legal. However, young riders often use them on streets anyway.
According to the Daily Mail, “The Police and Crime Commissioner claimed the majority of people using these type of e-bikes are ‘doing something wrong’ as she voiced her concerns over the spate of crime gripping Britain.”
Jones says that these electric motorbikes have been used extensively in street crime, usually in the form of phone snatching. Social media is full of videos of pedestrians walking down the street while using their phones and having them grabbed by a rider of a Sur Ron-style electric motorbike.
Scotland Yard has reportedly been in contact with the Chinese company Sur Ron, the manufacturer of many of these electric motorbikes, and the company has apparently vowed to cooperate with police.
Sur-Ron-style electric motorbikes have surged in popularity among young riders in Britain, particularly in urban areas where their lightweight frames, high torque, and near-silent operation make them appealing for both recreation and practical commuting. However, we’ve also seen them become a praised getaway vehicle for criminals, even if Jones’ claim that they are used “almost exclusively” for crime is quite likely an exaggeration based on confirmation bias.
Unlike traditional combustion engine motorcycles, these e-motorbikes can be more easily obtained to be ridden without a license, even if that is not permitted by local laws. Additionally, many are easily modified to exceed UK regulations with higher speed and power than is traditionally permitted.
Their ability to accelerate quickly and maneuver through traffic with ease has also made them a tool of choice for criminal activity, particularly in these types of phone-snatching and ride-by thefts, where offenders use the bikes to evade police and disappear into narrow streets or pedestrian areas.
With police enforcement struggling to keep pace with their widespread, often unregistered use, authorities continue to debate whether tougher restrictions or alternative solutions are needed to curb both their illegal modifications and criminal misuse.
FTC: We use income earning auto affiliate links. More.
After dominating in China, BYD is making an aggressive push into Europe. With another EV plant reportedly coming soon, this time in Germany, BYD is taking direct aim at Volkswagen, BMW, and other domestic OEMs.
BYD wants a third EV plant in Europe, likely in Germany
BYD is already quickly expanding its European footprint with two manufacturing plants under construction. One is in Hungary, and the other is in Turkey.
According to a new report, a third could be coming soon. BYD’s executive vice president, Stella Li, recently told German newspaper Automobilwoche that the Chinese EV maker is eyeing another plant, and this time, it could be in Germany, the heart of Europe’s auto industry.
Although Li didn’t offer any other details, a source familiar with the matter told Reuters that Germany is likely BYD’s best option.
Germany is home to Volkswagen, BMW, Mercedes-Benz, Porsche, and several others, which could lead to a major market shakeup.
BYD has been gaining momentum, with overseas sales surging in the first two months of 2025. In January, the company sold a record 66,336 NEVs overseas. Last month, BYD topped that with just over 67,000 vehicles shipped to overseas markets.
Chinese brands continued gaining traction despite new vehicle registrations falling 2% in Europe in January. With over 37,100 vehicles registered, Chinese brands accounted for 3.7% of the market, up from 2.4% in January 2023.
BYD wants to grow the brand in Europe and connect with local buyers. Although Germany would likely be the best place to do so, high energy costs could be a challenge.
Last Summer, BYD bought out its German distributor, Heden Electric Mobility, giving it more control over pricing and out.put
With the EU imposing new tariffs on EV imports from China, BYD could offset some of the costs through local production. Meanwhile, China has also warned domestic companies not to invest in countries applying additional tariffs.
BYD’s plant in Hungary is scheduled to open in October. The second in Turkey will come online in 2026, and both plants are expected to have a combined annual production capacity of 500,000.
Although BYD is best known for its low-cost electric cars, like the Dolphin and Atto 3, the company is expanding with luxury EVs, pickups, smart SUVs, and supercars now hitting the market.
BYD is aggressively ramping up in the region. According to S&P Global Mobility, BYD’s sales are expected to double in 2025 to 186,000. By 2029, the company is expected to sell around 400,000 vehicles with a full lineup.
No final decision has been made yet, but Li said the third plant could come within the next two years. After overtaking Volkswagen as China’s largest automaker, BYD could set up shop on its home turf. Check back soon for more. We’ll keep you updated with the latest.
FTC: We use income earning auto affiliate links. More.
We EV enthusiasts have heard it all from the haters before. “What are you gonna do with all those batteries?” “There’s just not enough range,” and, of course, “Charging takes so much longer than a gas station visit.” As previously teased, Chinese auto conglomerate BYD has introduced a new 1,000-volt EV platform that can enable charging rates as fast (or perhaps faster) than a trip to the gas station. We’re talking five minutes.
We got official confirmation from BYD this morning (evening in Shenzen, China) following a report we followed last Friday. On its Weibo page last week, Build Your Dreams (BYD) teased some capabilities of a new EV architecture it calls the “Super E-Platform,” sharing that it will enable charging parity with gas station visits.
To achieve that, BYD promised 1,000 kW charge speeds—double the current industry leaders, including Tesla. In reality, it’s tripling the standard as most fast chargers on the market can only reach about 350 kW, and many of them (in the US, at least) are usually more in the 200s.
While there are some ultra-luxe EV models powered by higher voltage platforms, 800V has been the ceiling for a while, and to be honest, most models today cannot even hit 350 kW. BYD plans to change that with its new “Super E-Platform,” which has officially been unveiled and offers 1,000V and charge rates up to 1,000 kW.
BYD delivers charging speeds similar to gas station visits
As promised last Friday, BYD held a livestream event at its headquarters in Shenzen, China, where it officially unveiled its new 1,000V Super E-Platform, capable of charging 1MW+ (1,000 kW) rates. Per its Weibo post (translated from Chinese):
BYD officially releases flash charging battery with ultra-high voltage of 1000V, ultra-large current of 1000A and ultra-large power of 1000kW, achieving global mass production of megawatt flash charging with the highest peak charging speed of 1 second and 2 kilometers, completely solving users’ charging anxiety when traveling.
As you can see from the images detailing the new platform’s specs above, this is a 1,000-volt, 1,000-amp platform that enables charging up to 400km (249 miles) of range in a mere five minutes. As we pointed out last week, today’s event also marked the launch of BYD’s new Han L and Tang L models in China, which will utilize the new fast-charging platform.
To support future models capable of these industry-leading charging speeds, BYD plans to implement over 4,000 ultra-fast charging stations around China. However, the timeline of that rollout remains unknown to the public. You can watch BYD’s complete live stream, debuting the technology and its capabilities here.
Electrek’s take
While this technology is designed in China, for China (at least for now), BYD’s debut of the Super E-Platform is a momentous day for the EV industry. BYD has developed and delivered platform architecture that is the best in the world on paper and has proven that it is possible to deliver charging speeds that are on par with a trip to the gas station.
Charging times remain a huge hurdle for larger EV adoption, so news like this breaks a ceiling for the current industry and offers a glimpse into the future to a day when more and more electric vehicles can recharge quickly, taking one more argument away from naysayers. Bravo BYD.
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports12 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway