Was at a ‘Friendsgiving’ and a guy was talking about the Tesla Model 2 being an entry-level Tesla that would rival the Toyota Camry pricewise. But I don’t see why Tesla would cut into their Model 3’s sales like that. Plus the model 3 is fairly cheap nowadays with price cuts
Tesla has more or less saturated the market segment for Model 3 and Y. To continue expanding their production, they have lowered the prices of those two models so they have a lower profit per vehicle than they used to.
That is a rather clear indication that they need something below Model 3 and Y if they want to continue their growth and still keep a positive profit.