Tesla Abandons Plans for Affordable Human-Driven EV

By Chris Kirkham
(Reuters) – In April, Reuters disclosed that Tesla (NASDAQ:TSLA) had abandoned its plans for a much-anticipated $25,000 electric vehicle (EV), causing the company's stock to drop. CEO Elon Musk quickly denied the report on X, calling it a lie, which contributed to a slight recovery in Tesla's share prices.

However, in an earnings call on October 23, Musk admitted that it would be "pointless" to produce a human-driven $25,000 car unless it was fully autonomous. This statement came after an investor questioned the future of a non-robotaxi regular car model.

Musk's comments revealed a shift in Tesla's focus towards robotaxis and autonomous vehicles. He elaborated that Tesla plans to produce a fully autonomous vehicle—dubbed the “Cybercab.” Unveiled on October 10, this model is projected to cost approximately $25,000 and aims to begin production in 2026, following the deployment of fully autonomous versions of Tesla's current offerings.

Previously, Tesla aimed to produce 20 million vehicles by 2030, a goal now absent from their impact report. Although Musk had confirmed plans for an affordable EV model earlier this year, the shift away from human-driven models aligns with increased competition from Chinese EV manufacturers.

Analysts suggest Tesla may focus on creating more affordable vehicles using existing platforms rather than investing in new technology. Investor reactions have been mixed, with Musk's robotaxi presentations lacking detailed plans, leaving many unsure about the future of the Cybercab, especially with its unusual two-door configuration.

Musk stated that the Cybercab was designed to be "optimized for autonomy" and will be affordable without the traditional driving controls.

Summary

Musk admitted Tesla abandoned plans for a $25,000 human-driven EV, shifting focus to a fully autonomous “Cybercab,” set for production in 2026. Investors express uncertainty.