First, Tesla canceled the Model 2—now it's working on a new small EV

After canceling the long-promised Model 2, the company is now secretly developing a smaller electric vehicle, a move that admits the old plan failed while promising a slightly different variant. Data shows Tesla spent over $2 billion on Model 2 development before scrapping it. The new EV targets a sub-$25,000 price point, aiming to capture a market segment abandoned by the Model 2's cancellation.