In October,
Tesla CEO
Elon Musk indicated that producing a $25,000 human-driven
Tesla is no longer in the company's plans, during a recent earnings call.
Musk referred to such an endeavor as 'pointless' unless the vehicle operates fully autonomously.
Originally,
Tesla promised an affordable electric vehicle to expand its market, while targeting a production goal of 20 million vehicles annually by 2030.
However, that goal was quietly dropped in May, reflecting a shift in strategy.
Tesla is instead focusing on 'robotaxis,' prioritizing the fully autonomous Cybercab, a two-door, two-seat vehicle, scheduled for production in 2026.
The Cybercab was unveiled on October 10 during an event in Los Angeles.
This marks a significant pivot from earlier plans to produce an affordable EV, signaling
Tesla's recalibration towards autonomy over driver-based affordability.
Despite Musk's initial rebuttal to April's Reuters report about abandoning the Model 2 plans, which led to a temporary dip in
Tesla's stocks, Musk's latest statements suggest the company prefers leveraging existing platforms to produce more cost-effective models than developing a new one.
As
Tesla deals with the technological and regulatory challenges of autonomy, questions remain about the feasibility and market fit of its upcoming autonomous offerings.