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Tesla Unveils Cheapest Model Yet, Rivals Scramble on Newest Electric Cars

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Tesla Unveils Cheapest Model Yet, Rivals Scramble on Newest Electric Cars

In a strategic pricing gambit, Tesla launched its most affordable electric vehicle, the Model 2, at $25,000, triggering a frantic race from legacy automakers and Chinese rivals to recalibrate their EV lineups. The move is projected to slice margins industry-wide by 8% but could double global EV adoption rate to 45% by 2026, a clear signal that the era of premium-price EVs is over. Analysts from JPMorgan note that this price war will force a 12% consolidation among smaller players, making the newest electric cars accessible to mass markets for the first time.