Media reports have suggested in recent days that Tesla may have axed a plan for a higher volume and low-cost electric car that would retail at around $25k (sitting below the Model 3 and dubbed ‘Tesla Model 2’).
Anonymous sources have told the Reuters news agency that future investment in the inexpensive car – long thought to be a the heart of the Tesla mission – had been scrapped in favour of self-driving robotaxis.
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However, in response through a posting on X (formerly Twitter), Tesla chief Elon Musk accused the news agency of ‘lying (again)’.
Tesla is promising a robotaxi reveal on August 8th. Reports suggest that Tesla’s full-self driving (FSD) beta project is making good progress.
Analysts say that the strategic shift may reflect a view that the volume end of the electric car market is going to be more competitive due to the presence of the Chinese OEMs and that profit projections are now smaller than they would have been a few years ago.
There is also some speculation that the engineering underpinnings for a Tesla Robotaxi will be taken from the development work already carried out on the small Tesla.
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