Tesla Abandons Low-Cost EV Robotaxi Plan

Tesla has reportedly dropped its ambitious plan to build a $25,000 electric vehicle (EV), a project that was seen as a pivotal step in the company’s growth strategy. This decision marks a significant shift in Tesla’s approach to expanding its EV lineup.

Background of the Low-Cost EV Project

Tesla’s vision for a more affordable EV was aimed at making electric vehicles accessible to a broader market. The target price point of around $25,000 was set to bring Tesla’s innovative technology to a wider audience, breaking the barrier of electric vehicles being a luxury commodity.

Instead of pursuing the low-cost EV, Tesla is now redirecting its efforts towards developing a robotaxi. This robotaxi is being built on the same small EV platform initially intended for the lower-cost vehicle. The shift indicates Tesla’s strategic move towards autonomous driving technology and its potential in revolutionizing transportation.

Elon Musk’s Response

Tesla CEO Elon Musk responded to the report by Reuters, claiming without proof that the news outlet is “lying.” Musk did not dispute any specific details of the report but expressed his disagreement with an eyes emoji on his social media platform, X.

There has been speculation about whether Tesla would prioritize a typical car design or opt for a more futuristic approach without steering wheels or pedals. This debate reflects the challenges in balancing innovation with practicality, especially since Tesla has not yet produced a fully autonomous car.

Tesla’s decision to abandon the low-cost EV project in favor of focusing on a robotaxi reflects a strategic shift in the company’s priorities.

While this move may disappoint those awaiting a more affordable Tesla vehicle, it underscores the company’s commitment to leading the charge in autonomous vehicle technology.

As the story develops, it will be interesting to see how Tesla’s revised focus impacts the future of electric and autonomous vehicles.