Elon Musk, CEO of Tesla, has denounced recent claims suggesting the cancellation of an entry-level electric vehicle (EV) project by Reuters. The report alleged that Tesla had abandoned plans for an affordable car in favor of focusing solely on the development of a self-driving robotaxi.
Reuters purported that internal sources confirmed the cancellation of the entry-level vehicle, which was intended to compete with budget-friendly Chinese EV models. However, Musk rebuked these claims, accusing Reuters of dishonesty without providing specific details.
In a tweet, Musk dismissed Reuters’ report as untrue and announced plans to reveal a robotaxi model on August 8, 2024. The robotaxi is said to utilize the same platform initially intended for entry-level EVs for private buyers.
During a panel discussion, Tesla’s chief designer, Franz von Holzhausen, echoed Musk’s sentiments by advising caution and suggesting that not all information in the media may be accurate. Despite Reuters’ assertions, Musk had previously disclosed plans to commence production of the affordable model at Tesla’s Texas facility in the latter half of 2025. However, the recent controversy suggests a shift in strategy towards prioritizing robotaxi development.
Internal sources revealed that Tesla’s focus has shifted towards robotaxi production, despite potential regulatory challenges associated with such a venture. The decision to cancel the entry-level EV reportedly came after a meeting in February, where Elon Musk emphasized the importance of pursuing the robotaxi project.
Messages obtained by Reuters indicated a halt in activities related to the canceled vehicle, referred to internally as the NV91. Despite efforts to document and conclude the project properly, the sudden change in direction has left engineers reassigned and meetings canceled.
The biography of Elon Musk by Walter Isaacson sheds light on the internal discussions surrounding the entry-level EV project. Despite arguments from Tesla executives in favor of continuing its development, Musk insisted on prioritizing the robotaxi initiative, envisioning it as a revolutionary product with transformative potential.
While Musk has previously expressed interest in launching a $25,000 vehicle to expand Tesla’s market reach, recent developments suggest a shift towards prioritizing autonomous driving technology over affordability. Tesla’s ambitious goal of selling 20 million EVs by 2030 faces challenges amid intensifying competition and regulatory hurdles.
Despite setbacks, including lower-than-expected quarterly deliveries, Tesla remains committed to advancing its technological capabilities and reshaping the future of transportation.