Episode 558: Tesla's More Affordable 'Model 2' Might Be Happening After All
About this episode
Tesla’s affordable push is back in the spotlight: Reuters reports Tesla is developing a smaller, cheaper compact SUV (the “Model 2” idea) with steering wheel and pedals, plus a human-driven option even while pursuing driverless capability. The show also covers Intel joining Tesla’s Tariff Fab chip venture, FSD Supervised v14.3 rollout details (including upcoming pothole avoidance), and Rivian R2 EPA range beating expectations. Elsewhere: Volkswagen pauses new US EVs for years, Waymo and Waze team up to share pothole data, and a John McNeil story explains how Tesla’s mobile service started.
Just when it looked like Tesla was abandoning affordable EVs in favor of purely autonomous vehicles, a new report says the company is planning to produce a smaller, more affordable SUV – with a steering wheel and pedals. Plus: a major partner signs on to Tesla's moonshot Terafab project, the Rivian R2's official EPA-rated range beats the company's original estimates, and more!
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Tesla
"just when it looked like Tesla was abandoning affordable EVs in favor of purely autonomous vehicles,"
Tesla is the EV maker leading many affordability and software-driven initiatives in the industry. In this segment, it’s the company behind the rumored shift toward a smaller, cheaper SUV.
EPA rated range
"The Rivian R2's official EPA rated range beats the company's original estimates"
EPA-rated range is the official number for how far an EV can drive on one charge, based on standardized tests. It helps you compare different EVs more fairly.
EPA-rated range is the distance an EV is expected to travel under standardized U.S. Environmental Protection Agency test procedures. It’s one of the most widely used “apples-to-apples” range comparisons because it’s based on consistent testing rather than marketing estimates.
Tesla Model S
"Well, speaking of slashing, that's exactly what Tesla didn't do to the prices on the remaining model Ss and Xs in inventory. They instead raised the prices by up to $15,000 on the remaining inventory of the model Ss and Xs,"
The Tesla Model S is Tesla’s main electric sedan. Here, they’re saying the price went up on the cars Tesla still had in stock, which makes it harder to get a deal.
The Tesla Model S is the company’s flagship electric sedan. In this segment, the host is talking about pricing changes on remaining Model S inventory, which affects how affordable the car feels to buyers.
Tesla Model X
"Well, speaking of slashing, that's exactly what Tesla didn't do to the prices on the remaining model Ss and Xs in inventory. They instead raised the prices by up to $15,000 on the remaining inventory of the model Ss and Xs, which is super not cool."
The Tesla Model X is Tesla’s electric SUV. The host is criticizing Tesla for raising prices on the remaining cars they had available.
The Tesla Model X is Tesla’s electric SUV. The discussion here focuses on how Tesla handled pricing on remaining Model X cars in inventory, which is relevant to anyone shopping for an EV deal.
markup
"...now their only option is paying a big markup on an inventory car... And so now a 15K markup on a lot of the inventory cars, just, it's not great."
A markup means the car costs more than it should—extra money added on top of the price you expected.
A markup is an added price above the expected or advertised price. In the EV context here, the speaker is describing customers being forced to pay extra because they missed an earlier pricing window and now only have higher-priced inventory options.
Intel
"They're called Intel, so yes, obviously I'm being very sarcastic there. Yes, Intel, one of the biggest chip manufacturers, they are, I guess, well, maybe Apple is... Point is, everybody knows Intel... and they have partnered with Tesla on this project."
Intel makes the computer chips that power modern electronics. Here, they’re teaming up with Tesla to help build better chip-making technology, which can improve how cars and AI systems run.
Intel is a major semiconductor company that designs and manufactures computer chips. In this segment, Intel is described as partnering with Tesla on a chip-fabrication (“silicon fab”) effort, which matters because EVs increasingly rely on advanced chips for battery management, power electronics control, and driver-assistance systems.
Elon Musk
"Intel posted a picture of Tesla CEO Elon Musk shaking hands with Intel CEO Lip Bhutan, I hope I'm pronouncing that correctly..."
Elon Musk is the top leader at Tesla. Mentioning him here is basically saying Tesla is taking this chip/AI partnership seriously.
Elon Musk is the CEO of Tesla and a prominent figure in multiple technology ventures. The handshake reference is used to highlight Tesla’s leadership involvement in the semiconductor partnership and broader compute/AI ecosystem.
FSD Supervised
"and for now the caveat is if you have an AI for equipped car, and of course, either own or subscribe to FSD, that cooler thing in your hands, the version 14.3 of FSD Supervised."
FSD Supervised is Tesla’s “assisted driving” mode. The car can do more driving tasks on its own, but you still have to watch and be ready to take control.
FSD Supervised is Tesla’s driver-assistance system that can perform more advanced automated driving tasks while still requiring the driver to supervise and be ready to take over. It’s delivered via software updates rather than hardware changes each time.
release notes
"here is a list of all of the updates, the release notes, plus a few things in the release notes that Tesla says that they are working on"
Release notes are like a changelog for the car’s software. They tell you what Tesla changed or improved with an update.
Release notes are the documented changes a software update brings to a vehicle. For Tesla, they often include new features, bug fixes, and changes to driver-assistance behavior.
reinforcement learning
"[813.0s] reinforcement learning, [814.5s] which might be the same thing as real life training, [816.7s] but anyway, officially it stands for reinforcement learning."
Reinforcement learning is a way for a computer to learn driving behavior by trying things and getting “points” for good outcomes. The system gets better by repeating this process many times.
Reinforcement learning (RL) is a type of machine learning where an AI agent learns by taking actions and receiving rewards or penalties. In this context, Tesla uses RL-style training to improve driving behavior by rewarding safer or more correct actions.
report from Reuters based on sources
"[1652.0s] So I have to, journalistically, [1654.3s] I am dutifully bound to tell you, [1657.5s] this is not fact, [1659.2s] this is a report from Reuters based on sources,"
Reuters is saying they heard this from sources, not from Tesla officially confirming it. That means it could be right, but it’s still a rumor until Tesla makes it official.
This describes a news report that relies on unnamed or off-the-record sources rather than confirmed statements from the company. In automotive reporting—especially for rumored models—source-based claims can be accurate, but timing and details may still change before launch.
extended warranty policy
"The referral code to get a $100 discount on whatever extended warranty policy you end up choosing for your vehicle. $100 off with the referral code Lightning."
An extended warranty is extra coverage you buy after the original warranty ends. If something covered breaks, the warranty can help pay the repair bill.
An extended warranty is coverage you buy beyond the factory warranty period to help pay for certain repairs. For EV owners, it can be especially relevant for expensive components like drive units, battery-related systems, and electronics, depending on what the policy covers.
Rivian
"Tesla under promised and over delivered on the Model 3, and Rivian doing the same thing here in their Model 3 moment"
Rivian is an EV automaker known for trucks and SUVs, and it competes with Tesla in the EV market. Here, the speaker groups Rivian with Tesla as companies that “under promised and over delivered” during a key product moment.
freeze-thaw cycles
"including those with winter weather and harsh freeze-thaw cycles that exacerbate the pothole problem."
Freeze-thaw cycles happen when water in the road freezes, then melts again. That repeated movement can break the pavement down faster and create potholes.
Freeze-thaw cycles are repeated freezing and thawing of water in road surfaces. This process expands and contracts the material, accelerating pavement deterioration and making potholes more likely.
cargo space
"looking specifically at those things you're concerned about, like maybe you're not sure about the cargo space. So on your test drive, you bring it home and then try to load a big thing in the back of it"
Cargo space is how much stuff you can fit in the car. It’s not just the number—it also depends on how the trunk opens and the shape inside.
Cargo space is the usable volume behind and around the rear seats, and it affects how easily you can fit bulky items. Even if a car’s specs look good, real-world cargo space depends on opening size, seat-folding layout, and how the trunk or hatch shape handles large objects.
shorter test drives
"You get my point that shorter test drives aren't necessarily conducive to addressing the concerns that you have. So if you plan for that ahead of time, make a list of the things you are concerned about"
The idea is that a quick drive might not show everything you’ll care about later. They suggest writing down your questions first so you can focus your time with the car.
This is a decision-making concept: short test drives may not be long enough to surface concerns that depend on repeated use (comfort, charging routines, visibility, software behavior, etc.). The hosts recommend planning ahead by listing concerns before the appointment so the evaluation is more targeted.
route planning
"...when I go north for my house, I wanna go down this specific street, and it's actually done it several times."
Route planning is how your car’s navigation decides which roads to take. Here, the listener is basically checking if it keeps picking the same street they want.
Route planning is the process a navigation system uses to choose roads and timing to reach a destination. The caller is testing whether the system consistently selects the same street when heading north from their house.
tempered glass screen protectors
"the tempered glass custom fit gorilla glass screen protectors, which I highly recommend."
A tempered glass screen protector is a clear, tough cover you put over a screen. It helps prevent scratches so the screen stays looking new.
Tempered glass screen protectors are aftermarket covers that protect a device screen (here, the car’s center display) from scratches and minor impacts. They’re typically designed to be easy to apply and to preserve touch/display clarity.
Infinity Shield
"Meanwhile, the Infinity Shield, this is the super cool, very full coverage garage door sensor suite that I've been telling you about recently."
Infinity Shield is a device that helps stop your garage door from closing if something is in the way. It uses sensors/laser beams so the door knows not to move.
Infinity Shield is a sensor system designed to prevent garage doors from closing on objects. In this segment, it’s described as a “full coverage” setup with a laser grid mounted higher on the garage door area.
no restocking fees
"They also offer no restocking fees, no return shipping if you do end up getting something that doesn't work out for you, lifetime warranties as well."
It means if you return something, the company won’t charge you an extra fee just for taking it back. That makes it safer to try a product.
No restocking fees means if you return an item, the seller won’t charge an extra percentage or fixed amount just for processing the return. For buyers, this reduces the cost risk if a part doesn’t fit or you change your mind.
return shipping
"They also offer no restocking fees, no return shipping if you do end up getting something that doesn't work out for you, lifetime warranties as well."
This is the cost of mailing the item back. The host is saying you won’t have to pay that cost if you return it.
Return shipping is the cost to send an item back to the seller. The host says there’s no return shipping, which can matter a lot for heavier or expensive Tesla accessories.
DIY installation videos
"And for anything you buy, they've got over 600 DIY installation videos on their YouTube channel. So installing their products is simple and very detailed for all Tesla owners."
These are videos that show you how to install the product yourself. That can save money and help you avoid mistakes during installation.
DIY installation videos are step-by-step guides for installing aftermarket parts yourself. For Tesla owners, this can reduce labor costs and help ensure the accessory is fitted correctly without damaging trim or sensors.
promo code
"Discount code here as well. Thank you to rpmtesla for offering this to my audience. The promo code for an additional five to 10% off your next order on top of their already discounted sales prices."
A promo code is a special code that gives you a discount when you buy something online. Here, it’s for extra savings beyond the sale price.
A promo code is a discount code you enter at checkout to reduce the price. The host is describing an additional discount on top of already-discounted sales prices.
Immaculate Reflections
"Immaculate reflections. You gotta get in there if you're in or gonna be in the Greater San Francisco Bay Area with a vehicle that you love, whether it's your Tesla, whether it's something else in your garage."
Immaculate Reflections is a shop that does car detailing. They help make your car’s paint look better by fixing small scratches and swirl marks.
Immaculate Reflections is a detailing/appearance service being promoted for Tesla and other vehicles. The speaker highlights their paint correction work to remove swirls and micro-scratches and improve overall finish.
detailing work
"He was telling me the detailing work he was doing on that thing."
Car detailing is when someone cleans and improves the car’s look, like washing, polishing the paint, and cleaning the inside. It’s meant to make the car look its best and help protect the surfaces.
“Detailing” refers to professional cleaning and restoration of a car’s appearance—often including paint correction, polishing, interior cleaning, and protective coatings. For enthusiast cars like a GT3 RS, detailing is commonly used to preserve or enhance the finish.
EV
"And you can email me anytime about Tesla or EV related stuff. That email address is teslapodcastatgmail.com."
EV means electric vehicle. Instead of gasoline, it runs on electricity from a battery you charge.
EV stands for electric vehicle—cars powered primarily by electricity stored in a battery. EV discussions often focus on charging, battery performance, efficiency, and how EVs compare to gas cars in cost and convenience.
grandfathered in
"[5697.9s] And last but certainly not least, [5700.2s] the Plaid Tier supporters, they are grandfathered in, [5703.2s] the Plaid Tier is officially no more,"
“Grandfathered in” means if you signed up under the old rules, you don’t lose the benefits when the rules change. It’s like keeping your old deal.
“Grandfathered in” means existing customers/supporters keep their current rights or benefits even if the program changes or ends for new participants. In this segment, it’s used to explain why Plaid Tier supporters still receive perks.
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