- Elon Musk has been talking about the $25,000 electric car for years.
- Volkswagen just beat him to the punch with an EV it expects to sell for 25,000 euros ($26,600).
For years, Elon Musk has talked about Tesla's plans to reveal a $4 for the masses. Volkswagen just beat him to the punch.
The German automaker on Wednesday revealed the ID. 2all concept: a small, battery-powered hatchback that it plans to sell for 25,000 euros ($26,600) or less when it goes into production in 2026.
A vehicle at that price point would represent a huge step forward for the EV market. The $4 in February$4 according to Kelley Blue Book, and the cheapest Tesla is the Model 3, which starts at $42,990.
The ID. 2all show car is an early preview of an actual vehicle to come later down the road — one which may be called the ID.2. (VW currently sells an ID.3, $4, ID.5, and ID.6.) It hints at the overall design and capabilities we can expect from the real deal when it arrives by 2026.According to Volkswagen, the EV has a range of up to 280 miles, front-wheel drive, and a single motor delivering 223 horsepower.
Interior photos show a sleek, minimalist cabin with few buttons and two large screens. The accelerator and brake pedals are styled as play and pause buttons, which is a quirky touch.
There's just one snag for US-based buyers: Volkswagen has no plans to bring the future model stateside, a company spokesperson confirmed to Insider.And that makes sense, as the ID. 2all would be a tough sell for American shoppers, who have increasingly favored SUVs over the small hatchbacks that remain popular in Europe.
Musk's complicated, yearslong journey with the $25,000 EV
In 2020, $4 as battery costs came down. At the time, he targeted a timeline of about three years.
But $4 working on other projects — that included a humanoid robot — to pursue the cheaper venture.
At $4 earlier this month, which many anticipated would bring news about a sub-$30,000 model, Musk mentioned almost nothing of the sort. In fact, the event fell short of expectations, and $4 that would be smaller and cheaper than the Model 3.
Why automakers are racing to make cheaper EVs
In the meantime, other automakers are targeting the $4. A Deloitte study earlier this year found that 70% of US consumers don't want to spend more than $50,000 to buy an EV, and that $4 to their adoption.
$4, whose vehicles cost $87,400 and above, has said $4, consumers leaning into $4, and more accessible infrastructure will be key to the company's pursuit of a $25,000 car.
Legacy auto companies are racing to get cheaper electric models on the market. Some of $4 include the $26,500 Chevrolet Bolt EV, the $27,800 Chevrolet Bolt EUV, the $27,800 Nissan Leaf, the $33,550 Hyundai Kona, and more.