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Why Wouldn't Tesla Talk About the Compact Car During Investor Day?

Tesla investor day just finished and one thing that stood out was just how little Tesla talked about the compact car.


Tesla Investor Day and Compact Car

Tesla just finished its Investor Day presentation and Elon Musk unveiled Master Part 3: To transition the entire planet to sustainable Energy through EVs, battery storage, and electrifying the entire planet. One thing that many expected to see, that was missing, was details on the Model 2 or compact car.

Why would Tesla omit these details? For starters, Elon Musk revealed that Tesla is indeed building a giga factory near Monterrey, Mexico and that this factory would build the generation 3 vehicle platform. Most likely, from what I heard, this will be a compact car and a Robotaxi vehicle.

Tesla shared broad details of this that it would be 50% of the cost and much less than the Model 3 to operate on a cost per mile basis. But, there was no picture shown, only a vehicle that was covered up. In fact, Tesla had two vehicles covered up during the presentation and one of them needed to add about 700 million vehicles to the total global fleet.

Zach Kirkhorn mentioned that there will be a compact car and at least one robotaxi variation. That was good to know. We also know that the next generation assembly will be much more modular and simple. This means the Tesla Bot, Optimus, could help build the cars.

Elon Musk was even asked directly about the compact car and when we could expect to see details about it, and he very quickly dismissed the question and moved on to the next. I've been thinking about why Tesla is being very secretive about this vehicle.

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Future Date and Product Reveal

Elon Musk stated that there would be a future product event for the compact car and Robotaxi platform. My guess is that will happen sometime in late 2024. The giga factory in Mexico should be completed by then and ready to produce the car in that year.

I think one reason more details weren't shared is because Tesla doesn't quite know yet what the vehicle is going to look like - they are still in the research and development phase and that vehicle itself is being hashed out. Without clear details, anything Tesla says now could change, and they would have problems if the final product didn't match up to what they said.

That is the first reason I can think of is a legal reason - Tesla has to be very careful what they say and talk about in order to not mislead anyone or investors. By delaying, they are not putting themselves at risk of legal action.

Another reason that they are withholding information is to keep suspense going, and new products just take time. It's been years since the Cybertruck reveal event, and the first Cybertruck vehicles are finally going to get started toward the end of this year. That's a long delay in time.

The compact car hasn't even had a reveal event yet, and I think there is a good reason that Tesla isn't jumping the gun with a reveal event. Tesla knows it takes time to produce an actual product and is waiting until they have a more concrete idea of what the car will look like and how it will function. Without that, there just isn't anything to share and it would all be speculation.

Could there be other reasons Tesla isn't sharing more details on the compact car? Share them in the comments below.

In Related News: Elon Musk Gives Nod to Model 3 - Project Highland

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla, Screenshot


John Goreham    March 2, 2023 - 2:54PM

I think you nailed it. Tesla hasn't shared details because there are none to share. Tesla has not yet designed the lower-cost passenger vehicle it may someday sell. The company has simply created a goal, and the goal was shared. The EV media want Tesla to succeed, so we get renderings and price points of a vehicle still in the imaginary realm. Has Tesla even officially named it?