Morgan Stanley analyst Adam Jonas believes Tesla's planned low-cost Model 2 car is critical to its growth targets, estimated to be over 40% of incremental volumes by 2030. A report from Reuters said Tesla has scrapped plans for the affordable Model 2 to focus on robotaxis. CEO Elon Musk denied the reports but confirmed an unveiling event for Tesla's Robotaxi on August 8th. Jonas estimates the Model 2 could account for 36% of Tesla's unit volumes, 23% of auto revenues, and 17% of total revenues by 2030. Scrapping Model 2 plans raises questions if China has too many affordable EV options already or if a Model 2 wouldn't be a major growth driver.