Tesla Provides Update on 'Model 2', Its $25k Car, During Earnings Call

Tesla's gives an update on its upcoming more affordable vehicle

TopElectric/YouTube

The third-quarter earnings call for Tesla offered intriguing insights into the direction and focus of the company's upcoming next-gen vehicle, dubbed the Model 2 or the $25,000 car.

While drawing on a comparison to Cybertruck's production challenges, Elon Musk declared this vehicle will be more conventional for production with the overarching goal of achieving an unmatched level of manufacturing efficiency.

Functional Beauty: The Aesthetic Vision

The next-gen car is predicted to be the most produced car in Tesla's lineup, with the potential scale and reach of the Model 2, with implications suggesting it could match the combined volume of other Tesla models. The "high-volume, low-cost" will be simpler in design and technological features to achieve a production speed unprecedented in the auto industry. The mention of achieving "units per minute level that is unheard of" paints a picture of Tesla's commitment to scale and affordability.

Breaking away from the enchantment often associated with Tesla vehicles, Musk set the stage for a different kind of vehicle in the Model 2. Described as "utilitarian," this new vehicle won't be about enchanting consumers but serving a functional purpose. Despite this, Musk reassured that the car will still bear Tesla's signature beauty.

The Quest for Affordability

A dominant theme throughout the call was the relentless push towards reducing costs and improving operational efficiencies. Vaibhav Taneja, Tesla's Chief Accounting Officer, pointed out the myriad challenges and variables in managing product margins, especially given the ongoing factory upgrades.

Nevertheless, company representatives remain unwavering in their dedication to cost reductions for 2024, showcasing Tesla's commitment to affordability. As Taneja describes, this "cost attack" strategy involves meticulous examination and improvement of every line item, highlighting Tesla's dedication to affordability at every turn.

Musk equated their cost-reduction strategy to a "Game of Thrones" where even saving pennies mattered. Musk highlighted the importance of such savings, highlighting how even small elements, like unnecessary internal stickers or QR codes, are being scrutinized for their contribution to the vehicle's cost.

Driving down the costs for the Model 2 isn't just about large-scale production adjustments; it's about scrutinizing every tiny detail. Musk illustrated the cost anatomy of a vehicle, emphasizing the challenge of saving even $0.40 on each of the approximately 10,000 parts in a car.

What This Means for Model 2

All these cost-saving strategies are directly tied to Tesla's aspiration to introduce the Model 2 at an unprecedented price point. By focusing on "pennies" and being "ruthless" in their cost-cutting measures, Tesla is gearing up to deliver a vehicle that doesn't just promise efficiency and sustainability but also unparalleled affordability.

The road to the Model 2 is evidently layered with challenges. Still, if there's one takeaway from the earnings call, it's that Tesla is more committed than ever to making the dream of an affordable electric vehicle a reality for the masses.

Tesla FSD V13 Makes Big Improvements Around Emergency Vehicles, School Buses and Speed Zones [VIDEO]

HABiBtheDWEEB / bilalsattar

Tesla’s FSD V13.2.2 continues its rollout to the HW4 fleet, now complete with holiday goodness that makes it available to all HW4 vehicles. While FSD V13 is capable of some incredible feats, such as three-point turns, there are some additional capabilities Tesla hasn’t talked about yet.

Emergency Vehicle Handling

First up, better handling for emergency vehicles. While Tesla works on gathering audio data to make emergency vehicle detection even better, Tesla improved how it handles emergency vehicles with FSD V13.

FSD previously had issues handling emergency vehicles - sometimes pulling over and stopping on V12, other times requiring driver intervention to do the job. This led to lots of user interventions when an emergency vehicle was detected. Ensuring you’re out of the way of an ambulance can save precious seconds - which is enough to save lives.

V13 now does a much better job of pulling overly safely to the side for emergency vehicles. Check out the video below of FSD pulling the vehicle over to the side of the road.

First time ever witnessing FSD pull over for an ambulance! @edgecase411 pic.twitter.com/pZlort36PF

— Bilal Sattar (@bilalsattar) December 21, 2024

School Buses

Another issue that FSD had trouble handling previously was school buses. Previously, FSD would ignore the stop sign and flashing lights and attempt to drive around the bus.

School buses often required driver intervention, but it seems Tesla has dedicated time to training FSD V13 to handle them properly now. Check out this post of FSD now successfully stopping and waiting for a school bus.

FSD v13 stopped for a school bus! Waited till the stop sign folded in and then proceeded forward! pic.twitter.com/ReU4enxnNB

— HAB!B (@HABiBtheDWEEB) December 19, 2024

Speed Zone Handling

Reduced speed zones, including school zones, have had mediocre handling by FSD in previous versions. Now, some initial speed zone handling has arrived in V13.2. However, while it does handle some speed zones with blinking signs, it doesn’t necessarily handle all speed zones. For now, while Supervising, drivers will need to make sure their vehicles don’t exceed the speed limit, especially in school zones. In the meantime, look at this speed video of the vehicle handling a speed zone with FSD V13.

Slightly better video of FSD V13 responding appropriately to flashing yellow lights indicating it’s temporarily a 20mph zone. It didn’t exceed 25 despite being set to a much higher max speed

Wish I had it engaged before the turn though, my brain wasn’t working pic.twitter.com/D091lqmROh

— Geoff Coffelt (@Skate_a_book) December 20, 2024

Camera Cleaning

As part of V13, Tesla included some interesting features addressing hardware - namely camera cleaning, The initial changelog was slightly vague: “Improved Camera Cleaning” and nothing else.

It turns out this actually refers to the camera heating elements around the vehicle, including those around the B-Pillar. According to FSD engineer Yun-Ta Tsai, this is far more complex than just heating the camera up.

The system integration team does a lot of energy and thermal optimization across the entire vehicle, to optimize autonomy.

This is just one example. The heating is actually more complex than just heating it up.

Yes, real world AI cares about these things, a lot!

Join us, if… https://t.co/EprJ805FYi

— Yun-Ta Tsai (@YunTaTsai1) December 21, 2024

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Tesla Addresses Cybertruck Tonneau Cover Leaks with New Rubber Seals

The new Rubber Seal on the Aero Flap

theMONK11/Reddit

The Cybertruck features an automatic tonneau that lets you lock in valuables. It rolls back and forth along a track and is somewhat water-resistant. Tesla never said that the tonneau would be waterproof, but many owners have encountered a lot of water flowing into their tonneau covers.

The place where the glass roof meets the plastic strip - the aero flap- seems to be the location where most of the water gets in, and this has been noted by many as a constant source of leaks - while the rest of the bed stays mostly dry.

Tesla has attempted to fix this by adding additional slats to the tonneau, which ensures that there are slats left over underneath the aero cover, thereby providing some additional water resistance. However, it looks like they’re doing more now to prevent these leaks. 

New Rubber Seals

Tesla intends to issue a service code - the term they use for service bulletins to fix common problems - for this particular issue. This service code will include the removal of the old aero flap and the installation of a new aero flap that has additional rubber seals - similar to the ones used on windows. Thanks to theMONK11 on Reddit for catching this and providing the photo.

The service code hasn’t gone live yet, so it looks like Tesla is only testing this new part for owners who have complained about excessive water intrusion. We’ll likely see this new flap, with the additional rubber seals, become a standard part on newly built trucks to resolve this issue.

For everyone else, you’ll need to put in a service ticket with Tesla, but we would recommend waiting a few weeks before doing so. That will give them time to finalize the process and have the new part sent around to service centers across North America. Given that this isn’t a critical issue to the functionality of the vehicle, Tesla likely will not issue a recall for this - so it’ll be up to owners to create a service ticket and have the new applique installed.

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