Summary
- Elon Musk believes a $25,000 EV is pointless and silly
- Musk sees the future as autonomous
- Tesla will only build a $25,000 EV as a robotaxi for autonomous ride-sharing
- Musk had previously promoted the idea of a $25,000 Tesla in 2020
- Tesla plans to make EVs affordable for everyone by launching more affordable models in the first half of 2025.
Article
In a surprising turn, Tesla CEO Elon Musk announced during the automaker’s third-quarter earnings call that a $25,000 electric vehicle is “pointless” and “silly.” Musk stated that Tesla will only produce a $25,000 EV as a robotaxi designed for autonomous ride-sharing. This decision marks a change from Musk’s previous promotion of a $25,000 entry-level EV. The focus now is on the future of autonomous driving, as Musk believes that traditional EVs are at odds with the company’s vision.
Tesla’s vision of the future includes autonomous vehicles like the Cybercab and Robovan concepts, which were unveiled in October. The Cybercab, a two-seater without a steering wheel or pedals, is set to launch before 2027 and cost less than $30,000. However, this all-in approach to autonomous driving is a recent development for Tesla. Musk originally discussed plans for a $25,000 Tesla in 2020, with the goal of making affordable EVs accessible through advancements in battery technology and chemistry, such as lithium iron phosphate (LFP).
Despite previous conflicting signals from Tesla on the $25,000 EV project, recent reports suggest that preparations for an affordable model are still underway. In January of this year, Tesla reportedly contacted suppliers in anticipation of an entry-level model to be released in 2025, codenamed Redwood. While Musk did not mention the $25,000 Tesla project during a subsequent presentation to investors, he highlighted the importance of making EVs more cost-effective to compete with traditional forms of transportation.
Musk emphasized the need to make electric vehicles affordable for everyone during the earnings call, stating that Tesla is preparing to launch new, more affordable models starting in the first half of 2025. This shift in focus aligns with Musk’s belief that the future of transportation lies in autonomous vehicles. While the $25,000 EV project may have been put on hold, Tesla’s commitment to making sustainable transportation options accessible to the masses remains a top priority for the company.
Despite the uncertainty surrounding the $25,000 Tesla project, Musk’s statements suggest that Tesla is still dedicated to expanding its lineup of affordable electric vehicles. With plans to launch new models in the coming years and a continued commitment to making EVs more cost-effective, Tesla is positioning itself to lead the way in the transition to sustainable transportation. While the future of the $25,000 EV remains unclear, Tesla’s focus on affordability and accessibility for all consumers signals a promising step forward in the electric vehicle market.
Read the full article here