Tesla CEO Elon Musk has confirmed plans for an affordable electric vehicle from the company, first promised in 2020 with a starting price of $25,000, have been canceled in favor of the recently revealed Cybercab robotaxi.
Speaking during Tesla's third-quarter earnings call held on Wednesday, Musk said it no longer makes sense to launch an affordable regular model when Tesla is planning to launch the self-driving Cybercab with a starting price below $30,000.
“Basically, having a regular $25K model is pointless...it would be silly,” Musk said when asked about the previously announced $25,000 regular model, Inside EVs has reported.
Musk went on to say the affordable regular model is “completely at odds with what we believe” and that the “future is autonomous,” according to Inside EVs.
Tesla CEO Elon Musk at Cybercab event (screenshot) - Oct. 2024
The Cybercab was shown earlier in October together with a larger robotaxi to be called the Robovan. Musk said at the reveal that the Cybercab is targeted to start production before 2027. That's roughly a year later than the expected start of production for the affordable regular model, which was thought to be a compact crossover smaller than the Model Y.
Reuters, citing anonymous sources, reported as early as April 5 that Tesla canceled plans for the affordable regular model, and would instead use the model's low-cost platform for a robotaxi.
Two of the sources told Reuters they learned of the decision to abandon the affordable regular model in a large meeting that one said happened in late February. That person said Musk instructed Tesla to "go all in on robotaxi."
Tesla Robotaxi Cybercab
Another of the sources told Reuters that Tesla planned to build robotaxis in much smaller volumes than had been anticipated for the affordable regular model.
Reuters also reported that internal Tesla messages referenced the decision to cancel the model. One from March 1 from an unnamed manager on the program reportedly discussed the model's scrapping with engineering staff and advised them to hold off on telling suppliers "about program cancellation."
After the story was published, Musk took to X to post that "Reuters is lying (again)." He did not identify any specific inaccuracies.
