$40K Tesla Model 2: the game changer? REVOLUTION OR PRODUCTION HELL V2.0? WHY ELON'S BETTING THE HOUSE ON VOLUME.

Elon Musk announced during Tesla's fourth quarter earnings call that the company is working on a low-cost vehicle called the Model 2, which Musk claims will have an unprecedented production rate. However, industry analysts have downgraded their production forecasts for the Model 2 due to stagnation in the EV market. Despite this, Tesla built 1.85 million cars last year and has received support from President Biden's funding for EV production. Musk believes that once Tesla has a fleet of around 10 million cars, the company can sell its cars at cost and still make a profit from other income streams. The Model 2 is seen as a crucial step towards achieving this goal, but its success remains uncertain. The Model 2 will have a new production process called 'Unboxed', which aims to reduce costs and production time. Tesla's transition to mass-producing cars on a global scale has been challenging, but the Model 2 is seen as a make-or-break product for the company. [Extracted from the article]