For years, Tesla has been looking at developing an electric vehicle that wouldn’t break the bank for buyers. It was suspected that the vehicle would cost around $25,000, as CEO Elon Musk first mentioned in a 2018 interview with YouTuber Marques Brownlee. Musk recently said that the vehicle would be built on the company’s next-generation platform, which is currently in development, and that they were targeting production “towards the end of 2025.”
A Friday report from Reuters, however, has cast doubt on whether this low-cost Tesla will actually come to fruition. The news outlet reported that the company’s plans for a low-cost EV were recently canceled in favor of putting more resources toward developing a robotaxi.
Citing three in-the-know sources, Reuters said the decision was communicated to employees in February at an all-hands meeting. Musk was quick to respond on X, accusing the news outlet of lying, but he didn’t elaborate further.