Tesla Halts $25,000 Model NV9, Redirects Focus Despite Musk's Earlier Promises

Despite Elon Musk's prior claims, Tesla has shelved its anticipated $25,000 electric car, codenamed NV9, prioritizing other technological advancements. The project's delay contradicts earlier projections of a cheaper, accessible electric vehicle platform.

Tesla Puts Affordable NV9 Model on Pause, Shifts Gears to Advance Self-Driving Tech

According to Electrek, the project's codename was NV9. Tesla has been working on its “next-generation vehicle platform,” which is expected to enable much cheaper electric vehicles. The company has previously mentioned two forthcoming vehicles on the platform:

• a model cheaper and smaller than Model 3, sometimes being referred to as the “$25,000 Tesla” or “Model 2”

• Tesla Robotaxi: a new vehicle designed from the ground up for self-driving.

A few weeks ago, Reuters stated that "Tesla has canceled the long-promised inexpensive car." Elon Musk, the CEO, swiftly rejected the report.

As usual, there is more to the story. Musk's blanket denial of the news is likely due to Reuters' claims that the vehicle was "scrapped" and "canceled." According to individuals acquainted with the situation, Electrek can confirm that the program, known internally as “NV9”, has been postponed.

Musk may object to the characterization that it is "canceled," but the project is practically scrapped because Tesla is focusing all its resources on self-driving technology.

Tesla Redirects Resources: NV9 Project Defunded, Focus Turns to Robotaxi Amid Delays

According to people acquainted with the situation, Musk informed Tesla's Austin team in December 2023 that NV9, an expansion of Gigafactory Texas for the new, cheaper next-generation model, would be a priority in 2024.

However, the project was recently defunded entirely, and several of its employees were fired off as part of the layoffs announced on April 16.

Instead, Musk stated that he intended Tesla to focus on the southern extension of Gigafactory Texas, which will contain a massive data center for the Robotaxi project.

According to those familiar with the project, it is already behind schedule, and it is unlikely that it will be completed by the end of August, as Musk has pushed for. Musk revealed that Tesla's Robotaxi would be unveiled on August 8th, shortly after disputing reports that the cheaper variant had been canceled.

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