Reuters reported that Tesla has allegedly canceled its plans for a low-cost electric vehicle (EV) known as the Model 2, priced around $25,000. Instead, the company is said to be focusing on developing self-driving taxis, according to three separate sources. Surprisingly, these taxis are being developed on the same platform intended for Model 2, raising questions about the decision’s coherence.
Despite Tesla’s lack of response to Reuters’ inquiries, Elon Musk dismissed the report, accusing Reuters of falsehood in a post on X. Musk had previously informed Tesla investors in January that production of the affordable model, dubbed Model 2 by observers, would begin at the Gigafactory in Texas in the latter half of the following year.
Following the initial report, Tesla stocks experienced a 6% decline but partially rebounded after Musk’s rebuttal. Many investors capitalized on the stock dip, likely profiting from the market volatility and Musk’s strong denial of the report’s claims. Speculation arises regarding the credibility of the sources cited in the Reuters article, with suggestions that they may have had vested interests in the market reaction.
