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On January 8, Elon Musk announced his intentions of producing a new Tesla in Shanghai, China at Tesla Gigafactory 3. This electronic vehicle, which will be called Tesla Model 2; it is supposed to be the cheapest car yet, estimated between $25,000 to $35,000. There was an online teaser photo of this new compact car which obviously went viral. 

Tesla is heavily recruiting workers such as Chief Designer, Color Texture Manager, Operations Manager, Content Manager, as well as Software Engineering positions. Furthermore, Tesla accentuated that the fundamental notion for the configuration of Tesla 2 must be pertinent to China itself. 

Nonetheless, we can’t help but stop and question, why Model 2 won’t be out until around 2023-they had premiered Model Y, and then it was out nearly around the next year? Why is it taking so long to even do the Model 2 official premiere? This is most probably going to be Tesla’s most prominent selling model, so why are they taking so long with it? Three more years is a long time, especially for a small and simple car to design and install a navigation system chiefly for China? 


Well, if Tesla is determined to get up to 20 million cars a year, per se, this will no doubt be their most popular and successful selling model. Therefore, conceivably they’re aiming at selling 5 to 7 million of these a year. Regarding the battery, Elon Musk says that they completely went over the battery, all the way down to interior electrodes in order to make sufficient batteries, and hence EVs become more affordable. Elon tweets about Tesla Battery Day, saying that it affects long-term production.

The average car price in the United States is $32,000, which means that Tesla right now is taking out all of the market

Elon and China

Elon Musk deplored the “entitled” and “proud” personalities in the USA and praised the “intelligent” and “diligent” individuals in China, in a podcast last Friday.


After proving its prominence as an accountable automaker in China, the latter became a go-to for Tesla innovations. Tesla Model 3 did exceptionally well. Today, Musk prepared to make an electric vehicle that is suitable to be driven on Chinese roads, by its citizens.
Our new Model 2 would be the third one produced in Giga Shanghai subsequent to Tesla Model 3 and Model Y. The new model is set for worldwide delivery.  It has been reported that Model 2 will be based on the Model 3 chassis.

Tesla Facts tweeted: “With a $25k entry price Tesla can cover 90% of the $5t automotive market by revenue”.

Jason Stein, Automotive News publisher who had interviewed Elon Musk, asked: “How about China as an EV strategy leader in the world?” Musk replied: “China rocks in my opinion. The energy in China is great. People there – there’s like a lot of smart, hard-working people. And they’re really — they’re not entitled, they’re not complacent, whereas I see in the United States increasingly much more complacency and entitlement especially in places like the Bay Area, and L.A. and New York.”

Elon tweeted how much he admires and respects the Tesla China team and how their talent and drive are amazing.

Gigafactory Shanghai, Tesla

When Tesla started a hiring spree at Tesla Gigafactory 3 in January 2021, people had no idea what’s coming. Some thought that the Plaid Model needs more workers, but we were mistaken. Soon enough, the news of a compact yet effective $25k EV was all over the web. 

Tesla portrayed an image of an extremely intriguing concept vehicle; it was definitely unique. One thing we know for sure is that a Tesla Chinese-model will unquestionably be outstanding. Some of the Tesla team declare that they will be requiring a much larger factory prior to start working on Model 2. However, they do not have the scope in Shanghai to duplicate their facility. Will Tesla expand plants in order to create Model 2? 

In 2020, Chinese officials supported Tesla to protect loans that are approximately $1.6 billion for construction and to inaugurate the production of EVs at Tesla’s nearly novel Gigafactory, Shanghai.

Elon also tweeted that China is operating normally across hundreds of suppliers and all of Tesla Shanghai, which again depicts his great reverence towards the Chinese.

This year, Shanghai authorities backed up Tesla to get back rapidly to proceed with their endeavors at their new manufactory, after the area was thumped by Covid-19 blast. The Chinese also assigned widespread quarantines which briefly delayed production. 

That is why Elon Musk has such great respect for the Chinese. Model 2 is a long wait, but it absolutely seems like it’s worth every minute of it!

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