Tesla CEO Elon Musk has officially announced the cancellation of plans for an affordable electric vehicle with a starting price of $25,000. This decision comes as Tesla shifts its focus towards the development of the Cybercab robotaxi, which is set to have a starting price below $30,000.
During Tesla’s third-quarter earnings call, Musk explained that launching a regular $25,000 model is no longer viable when considering the upcoming self-driving Cybercab. Musk described the idea of a budget-friendly regular model as “pointless” and stated that it is not in line with Tesla’s vision for the future, which revolves around autonomous vehicles.
While Musk’s comments may suggest a departure from making EVs more accessible to everyone, Tesla’s own summary of its third-quarter results indicates that the company is still committed to offering more affordable models. Preparations are underway for the introduction of new models, including those with lower price points, starting from the first half of 2025.
The Cybercab, unveiled in October alongside the larger Robovan robotaxi, is expected to enter production before 2027. This timeline places the Cybercab ahead of the previously anticipated affordable regular model, which was rumored to be a compact crossover smaller than the Model Y.
Reports from Reuters in April had already hinted at Tesla’s shift away from the affordable regular model in favor of focusing on the robotaxi market. Sources revealed that Musk made the decision to prioritize robotaxis during a meeting held in late February, instructing Tesla to go all-in on this new direction.
Despite some internal messaging referencing the cancellation of the regular model, Musk took to social media platform X to dispute Reuters’ claims, stating that the news outlet was spreading falsehoods without specifying any inaccuracies.
In conclusion, Tesla’s decision to forego the $25,000 regular model in favor of the Cybercab robotaxi underscores the company’s commitment to innovation and adapting to changing market dynamics. While the cancellation may disappoint some hopeful consumers, Tesla remains dedicated to making electric vehicles more accessible through a range of upcoming models, including the futuristic Cybercab.