Tesla abandons plans to make a less expensive $25,000 electric vehicle

In a surprising turn of events, Elon Musk has decided to cancel plans for a low-cost electric vehicle in order to focus on the development of a robotaxi, according to a report by Reuters. The announcement was made during an all-hands meeting with Tesla employees in late February.

Musk had long been promising a budget-friendly electric vehicle priced at $25,000 as a way to make plug-in vehicles more accessible to the masses. However, the new shift in strategy comes in response to increasing competition from Chinese automakers who have been producing more affordable EVs.

Tesla is now aiming to begin production of the affordable EV by the end of 2025, although there may be potential delays. This decision comes after Tesla lost its position as the world’s top producer of electrified vehicles to China’s BYD.

Interestingly, Tesla accused Reuters of spreading falsehoods in a post on social media platform X, further adding to the drama surrounding the company’s recent decisions. Musk had also been hinting at plans for a new electric crossover vehicle set to start production in mid-2025, which could potentially be the much-anticipated $25,000 mass-market EV.

Meanwhile, Musk has been touting the potential of a Tesla robotaxi that would revolutionize car ownership. He suggested that the development of a fully autonomous vehicle could make the affordable EV obsolete, leading to the company’s decision to prioritize the robotaxi project.

With these recent developments, it will be interesting to see how Tesla navigates the competitive landscape of the electric vehicle market in the coming years. Stay tuned for more updates on this evolving story.