Toyota Corolla Hybrid safe for now! Tesla's shocking update on its $25,000 small electric car that promises to bring full autonomy to the masses

Keen to buy a new all-electric vehicle (EV) but keep finding even the cheapest ones are still prohibitively expensive? Well, EV specialist Tesla is keen to solve that problem – but just not anytime soon, if ever.

As reported, Tesla announced plans in September 2020 to produce a $US25,000 ($A35,562) “European-style” small hatchback by around late 2023. The model has since affectionately been dubbed ‘Model 2’, which would fit in with the core line-up’s naming convention.

Aside from an Autocar report last June that claimed the Model 2 would target the Nissan Leaf, Hyundai Ioniq Electric and Volkswagen ID.3 with a new battery that is 50 per cent cheaper to manufacture and delivers 16 per cent longer driving range, we’ve heard little since – until now.

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In a Q&A session following Tesla’s Q4 2021 financial results announcement, its founder, Elon Musk, provided an overdue update on the supposedly fully autonomous Model 2, which could give would-be Toyota Corolla Hybrid buyers a thing or two to think about.

“We’re not currently working on the $25,000 car,” he said. “At some point, we will. But we have enough on our plate right now – too much on our plate, frankly.”

Needless to say, the Model 2 is little more than an idea at the moment, with Tesla currently giving its attention to the Cybertruck full-size pick-up, Roadster sports car and Semi truck, all of which have been delayed multiple times, too.

Speaking of which, Mr Musk revealed Tesla has no new model launches planned for 2022, meaning the Cybertruck, Roadster and Semi won’t be released until 2023 at the earliest.

That, of course, means the Model 2 might not materialise until 2024, or the years that follow – if at all. And that’s for key markets like North America and Europe. Australia is generally at the back of the queue, so a local debut could occur closer to the end of this decade.

In the meantime, the Model 3 mid-size sedan is the most affordable Tesla model Australians can buy, with its entry-level variant priced from $59,900 plus on-road costs, although EV incentives are available on a state-by-state basis.