Elon Musk has refuted a report suggesting that Tesla is ditching its ‘$25,000 Model 2’ electric car in favor of prioritizing its ‘Robotaxi’.
Over the last few years, Tesla has been working on a new vehicle platform that would allow the launch of two new vehicles: a smaller and more affordable one, known as the ‘Model 2’, and a dedicated self-driving vehicle referred to as the “Robotaxi” by Musk.
However, a recent Reuters report claims that Tesla has abandoned plans for the Model 2:
Tesla has reportedly axed its long-anticipated budget-friendly car, which investors were looking forward to as a key driver of its expansion into the mainstream auto market, according to sources and company messages viewed by Reuters.
Despite this, Musk quickly dismissed the report, calling out Reuters for spreading misinformation:
Nevertheless, Musk did respond to a post indicating that Tesla may have shifted its focus towards the “Robotaxi” instead of the $25,000 vehicle.
The Reuters report suggested that Tesla “will continue developing self-driving robotaxis on the same small-vehicle platform.”
Musk had previously mentioned plans to reveal the next generation of electric vehicles by the end of the year and begin production by the end of 2025.
Currently, Tesla is establishing new production systems for the next generation at its Gigafactory Texas facility in Austin.
Electrek’s Take
Strategically, a move like this seems illogical to me. Tesla undoubtedly needs a more affordable vehicle to increase its market reach.
I was skeptical of the report from the start, especially given past issues with Reuters’s coverage of Tesla. In fact, we caught them subtly altering a post to make it appear that Elon had lied about questioning their reporting. I went into detail about this in a thread:
Despite my initial skepticism, it seems there may be some substance to the report, especially considering Elon’s subsequent reaction to the notion of prioritizing the robotaxi over the cheaper vehicle.
While it’s no excuse for poor reporting, having a PR department at Tesla could help prevent such issues.
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