In a significant development for the electric vehicle industry, Reuters, a highly respected and reliable source of business journalism, reported on Friday morning that Tesla, the pioneering electric car manufacturer, had shelved its plans for a $25,000 affordable electric vehicle. According to the report, which cited three sources and internal company messages, Tesla made the decision to cancel the project in order to focus on the development of an autonomous robo-taxi that would be built on the same platform.
However, shortly after the report was published, Tesla CEO Elon Musk publicly denied the claims made by Reuters. In a tweet to @ZeroHedge, Musk stated, “Reuters is lying (again).” It is important to note that while Reuters has a stellar reputation for accuracy and reliability, Musk has a history of being willing to bend the truth to serve his own interests, particularly when it comes to discussing timelines, features, and specifications of future products.
Despite Musk’s denial, some industry experts, such as @SawyerMerrit on X, have suggested that the apparent contradiction could be the result of a communication issue. It is possible that Tesla has simply decided to prioritize the development of the autonomous version of the vehicle ahead of the human-driven model, as both were originally intended to be built on the same platform. Alternatively, the autonomous version could be the “affordable” Tesla that the company has been promising, although it seems unlikely that a fully autonomous car could be produced for less than the current price of the Model 3.
The challenges of building a vehicle for significantly less than the Model 3’s current price point could also explain the situation. If Reuters correctly reported the demise of the $25,000 Tesla, it is possible that Musk’s denial was an attempt to mitigate the immediate impact on the company’s stock price. By promising that there is more to the story and that he has a secret plan to make it all work out, Musk may be attempting to reassure investors and maintain confidence in the company’s future prospects.
If the Reuters report is indeed accurate, it represents a significant setback for electric vehicle enthusiasts. Tesla’s scale and vertical integration give it a substantial advantage over its competitors, and no company is better positioned to sell and market an affordable electric vehicle to the American public. If Tesla is unable to make this happen, it raises questions about the feasibility of other manufacturers successfully bringing an affordable electric vehicle to market.
As the situation continues to unfold, it will be important to monitor both the official statements from Tesla and the reports from reliable industry sources to gain a clearer picture of the company’s plans and the future of affordable electric vehicles in the United States.
