Elon Musk Clears Air: Tesla's $25,000 EV Dream Still Alive Despite Rumors

Elon Musk swiftly countered a Reuters report suggesting Tesla ditched its plans for an affordable $25,000 electric vehicle, asserting the project's continuity alongside innovative Robotaxi developments.

Elon Musk Refutes Report on Tesla's $25,000 EV Cancellation Amid Robotaxi Plans

Elon Musk has denied a recent Reuters report claiming that Tesla has scrapped its affordable car, which is expected to cost around $25,000. The publication claimed to have learned about the cancellation of Tesla's low-cost EV program from three people reportedly familiar with the situation.

Reuters' report was quite surprising given that Tesla appears to be preparing for its next-generation vehicles, which are expected to consist of an affordable car and a dedicated robotaxi built on the same platform. According to the publication's sources, Tesla has abandoned its low-cost vehicle and focused on self-driving robots.

Musk's reaction to Reuters' report was immediate, with the CEO claiming in a post on social media platform X that the publication had lied again. However, Reuters claimed to have reviewed company messages to suppliers about NV91 and H422, the reported designations for the affordable car. The publication also claimed to have reviewed messages from a Tesla manager regarding the alleged cancellation of the low-cost EV.

While it is unclear whether Tesla's affordable car has been halted, expectations are high that the low-cost EV and dedicated robotaxi will be built on the same platform. Thus, even if Tesla decides to devote more resources to the robotaxi now, it is unlikely that the company will abandon its low-cost electric vehicle. After all, both vehicles may be very similar, except the affordable car has a steering wheel and pedals.

Elon Musk Hints at FSD Focus Amid Criticism of Tesla's Media Coverage

Elon Musk appeared to acknowledge such speculations about X, posting an "eyes" emoji in response to a Tesla watcher who wondered if Tesla was shifting more resources to FSD and the dedicated robotaxi in light of FSD V12's impressive results, as per Teslarati.

Musk has been critical of Reuters' Tesla coverage over the years, and the publication has been critical of both the CEO and the electric vehicle maker. In February 2023, Reuters staff won the George Polk Award for Business Reporting for their critical coverage of alleged "nefarious practices" at Musk-owned companies.

In November 2022, Musk also denied a publication report that Tesla was considering importing vehicles from Giga Shanghai to the United States. As of this writing, Musk's denial was accurate.

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