Volkswagen is preparing to enter the same segment as Tesla’s upcoming affordable car with the ID.2 electric vehicle.
Sales of the all-electric Volkswagen ID.2 are expected to start in 2025. The VW ID.2 will use the German automaker’s upgraded MEB-Plus platform, an enhanced version of VW’s modular electric drive matrix featured in the ID.Family lineup. Volkswagen’s ID.2 will also be equipped with lithium iron phosphate prismatic battery cells for improved charging capabilities. The ID.2 design might be capable of charging speeds up to 200 kW.
The Volkswagen ID.2 might be the electric equivalent of the German automaker’s popular compact five-seater, the VW Golf.
The ID.2 is expected to be sold for a starting price of €22,500 ($23,938.69)—as of today’s exchange rate, potentially making it a formidable challenger against affordable EVs, including Tesla’s widely-speculated compact car, in Europe.
The Volkswagen Golf
The Golf hatchback was the best-selling vehicle in Europe for decades until recently. JATO—a company that analyzes the European car market and global trends—shared data that revealed the VW Golf’s declining sales trend. JATO’s recent data showed that car sales across all European Union member states dropped. In the UK, Norway, Switzerland, and Iceland, car sales fell by 4.1% to 11,309,310, the lowest since 1985.
Revamping the Golf name and attaching it to an all-electric compact vehicle might be good for sales and popularity. Pricing the ID.2 a little shy of $24,000 is an even better move. At about $24,000, the Volkswagen ID.2 might compete in the same price range as Tesla’s upcoming affordable vehicle.
Tesla’s Affordable Car
Speculations about Tesla’s affordable vehicle have been swirling around the rumor mill for quite some time. The company is expected to price the car at about $25,000, making it a really affordable electric vehicle by today’s standards.
Tesla seems better positioned to start working on an affordable concept than a few years ago. For one, Semi production and deliveries have already started, and Cybertruck pre-production is expected to start later this year. Tesla still needs to work on the new Roadster design, but with the Semi and Cybertruck’s production underway, it will have more time to work on the next-generation vehicle.
At the Q4 2022 earnings call earlier this year, Elon Musk hinted at some future products Tesla is currently working on.
Giga Nevada’s upcoming expansion and additional 4680 battery assembly line also hint at Tesla’s plans for future car models. Musk and Tesla CFO Zachary Kirkhorn stated that only some 4680 cells manufactured in Giga Nevada would go to Semi vehicles. Musk hinted that some would be made for Tesla’s future products.
Loup Ventures believes that Tesla will unveil a “Model 2” vehicle in 2024, bringing its sales schedule around the same time as the Volkswagen ID.2. The Wall Street firm believes that unveiling the affordable car too early might slow down Model 3 sales. Tesla is due to release a Model 3 revamp this year, codenamed “Project Highland.”
The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.
News
NHTSA probes 2.9 million Tesla vehicles over reports of FSD traffic violations
The agency said FSD may have “induced vehicle behavior that violated traffic safety laws.”

The U.S. National Highway Traffic Safety Administration (NHTSA) has opened an investigation into nearly 2.9 million Tesla vehicles over potential traffic-safety violations linked to the use of the company’s Full Self-Driving (FSD) system.
The agency said FSD may have “induced vehicle behavior that violated traffic safety laws,” citing reports of Teslas running red lights or traveling in the wrong direction during lane changes.
As per the NHTSA, it has six reports in which a Tesla with FSD engaged “approached an intersection with a red traffic signal, continued to travel into the intersection against the red light and was subsequently involved in a crash with other motor vehicles in the intersection.” Four of these crashes reportedly resulted in one or more major injuries.
The agency also listed 18 complaints and one media report which alleged that a Tesla operating with FSD engaged “failed to remain stopped for the duration of a red traffic signal, failed to stop fully, or failed to accurately detect and display the correct traffic signal state in the vehicle interface.”
Some complainants also alleged that FSD “did not provide warnings of the system’s intended behavior as the vehicle was approaching a red traffic signal,” as noted in a Reuters report.
Tesla has not commented on the investigation, which remains in the preliminary phase. However, any potential recall could prove complicated since the reported incidents likely involved the use of older FSD (Supervised) versions that have since been updated.
Tesla’s newer FSD (Supervised) V14.1 update, currently rolling out to drivers, is expected to feature significantly improved lane management, intersection handling, and overall driving accuracy, reducing the chances of similar violations. It should also be noted that Tesla maintains that FSD is a supervised system for now, and thus, is not autonomous yet.
While autonomous systems face scrutiny, NHTSA’s own data highlights a much larger danger on the road from human error. The agency recorded 3,275 deaths in 2023 caused by distracted driving due to activities like texting, talking, or adjusting navigation while operating a vehicle manually. It is also widely believed that a good number of traffic violations are unreported due to their frequency and ubiquity.
News
Tesla quietly files for Model Y+ in China, and its range numbers could be wild
The upcoming variant was listed in the Ministry of Industry and Information Technology’s (MIIT) public catalog.

Tesla has filed for regulatory approval of a new Model Y+ in China, hinting at a long-range update to its best-selling crossover SUV.
The upcoming variant was listed in the Ministry of Industry and Information Technology’s (MIIT) public catalog.
Mirroring Model 3+ Range
Based on the MIIT’s catalog, the Model Y+ will feature a 225 kW/302 horsepower single-motor setup. It will also feature ternary LG Energy Solution batteries, similar to the long-range Model 3+, which was launched earlier this year. The vehicle is expected to offer around 800 kilometers of CLTC range, potentially making it the longest range Model Y in Tesla China’s lineup.
The new Model Y+, identified under model number TSL6480BEVBR0, retains the same five-seat configuration and dimensions as the current Model Y. Though Tesla has not yet confirmed official range figures, industry observers expect it to be quite similar to the Model 3+’s 830-kilometer CLTC performance, as noted in a CNEV Post report.
Intensifying Competition
Tesla’s filing comes amid intensifying domestic competition in China. The U.S. EV maker sold 57,152 vehicles in August, down nearly 10% year-on-year, though up almost 41% from July’s 40,617 units, as noted by data from the China Passenger Car Association (CPCA). Still, the Model Y+ could help Tesla regain traction against strong local players by offering class-leading range and improved efficiency, two factors that have become a trademark of the electric vehicle maker in China.
Tesla’s experience with the Model 3+, which received a RMB 10,000 price cut within a month of launch, suggests that raw range numbers alone may not guarantee stronger sales. With this in mind, the rollout of features such as FSD could prove beneficial in boosting the company’s sales in the country.
Elon Musk
‘I don’t understand TSLAQ:’ notable investor backs Tesla, Elon Musk

One notable investor that many people will recognize said today on X that he does not understand Tesla shorts, otherwise known as $TSLAQ, and he’s giving some interesting reasons.
Martin Shkreli was long known as “Pharmabro.” For years, he was known as the guy who bought the rights to a drug called Daraprim, hiked the prices, and spent a few years in Federal prison for securities fraud and conspiracy.
Shkreli is now an investor who co-founded several hedge funds, including Elea Capital, MSMB Capital Management, and MSMB Healthcare. He is also known for his frank, blunt, and straightforward responses on X.
His LinkedIn currently shows he is the Co-Founder of DL Software Inc.
One of his most recent posts on X criticized those who choose to short Tesla stock, stating he does not understand their perspective. He gave a list of reasons, which I’ll link here, as they’re not necessarily PG. I’ll list a few:
- Fundamentals always have and will always matter
- TSLAQ was beaten by Tesla because it’s “a great company with great management,” and they made a mistake “by betting against Elon.”
- When Shkreli shorts stocks, he is “shorting FRAUDS and pipe dreams”
After Shkreli continued to question the idea behind shorting Tesla, he continued as he pondered the mentality behind those who choose to bet against the stock:
“I don’t understand ‘TSLAQ.’ Guy is the richest man in the world. He won. It’s over. He’s more successful with his 2nd, 3rd, and 4th largest companies than you will ever be, x100.
You can admit you are wrong, it’s just a feeling which will dissipate with time, trust me.”
i dont understand “$TSLAQ”. guy is the richest man in the world. he won. it’s over. he’s more successful with his 2nd, 3rd and 4th largest companies than you will ever be, x100.
you can admit you are wrong, it’s just a feeling which will dissipate with time, trust me. https://t.co/dkqrISCldp
— Martin Shkreli (@MartinShkreli) October 8, 2025
According to reports from both Fortune and Business Insider, Tesla short sellers have lost a cumulative $64.5 billion since Tesla’s IPO in 2010.
Shorts did accumulate a temporary profit of $16.2 billion earlier this year.
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