Tesla might be the number 1 EV company for a lot of reasons but they can’t wait on that throne comfortably as a lot of companies are now upping their game and trying to claim the segment as the industry expands day by day. Tesla recently faced another blow in the face in the EV segment as Volkswagen gets the better of Tesla by unveiling an affordable EV.
When it comes to pricey goods such as a vehicle the price has always been an important factor. The new Volkswagen EV is named ID. 2all and it recently got a concept launch. This vehicle has been given a starting price of just 25,000 euros or 26,600 dollars. This has led to it being called an affordable vehicle/mass-market electric vehicle and this will surely impact not just Tesla sales but also the sale of other EVs in the market.
The car is expected to go into production by 2025 which might still have some time, however, Volkswagen gets the better of Tesla by unveiling an affordable EV simply because Elon Musk has been promising for years to introduce an affordable EV. People expected him to unveil it at Tesla’s investor day event, a move that didn’t happen.
As of February 2023, the average EV price is 58,385 dollars as per Kelley Blue Book. To put things into context the cheapest Tesla model sets you back by at least 42,990 dollars which is an amount far from being an affordable or for mass consumption price.
Since Tesla’s affordable model didn’t arrive as expected on the investor’s day its share prices dropped as investors complained about the missing expected affordable EV. So it was damaging on two levels for Tesla and Elon Musk who need to get their head back in the game or risk losing their grip on the top spot in the EV market.
The ID. 2all is expected to have a range of 280 miles or 450 kilometers. The vehicle is said to have a front-wheel drive system and a single motor that will deliver 223 horsepower. On the inside, the car will have a few buttons and two screens and the cabin is sleek and minimalist. The best detail about the car has to be the accelerator and brake pedals getting the images of play and pause on them.
Also Read: All European Cars are to be Electrically Powered by 2026 as Nissan Decides to Level Up its Game
While the newly ideated model is good and everything it is a hatchback and for that reason, it won’t be seeing a US release. In the US people prefer SUVs over small Hatchbacks and to address this concern a company spokesperson said that they had no plans to take the model to the US markets in the future.
In another setback to Tesla, Volkswagen announced its plans to invest 180 million euros over 5 years. The investment will be used in areas such as raw material and battery production which in turn will help them bring down EV production costs. This will then help them overcome Tesla and other EV makers as it will help them get more market share.
Source: Volkswagen
