Tesla reportedly cancelled low-cost car project

Update: Tesla CEO, Elon Musk has responded to this information:

Reuters is lying (again)

— Elon Musk (@elonmusk) April 5, 2024

Tesla has canceled its work on a low-cost electric vehicle (EV) that could bring the boom to the EV maker’s business reports Reuters. Instead, the company will now focus on autonomous driving and robotaxi says the publication citing internal sources.

Earlier this year, Tesla CEO Elon Musk told investors that the company is preparing a low-cost vehicle to launch by next year and setting up the production line.

The company is selling its Model 3 at the lowest price point in the U.S. The rumored Model 2 on the other hand is expected to bring an entry price of $25,000 way down than Model 3.

The company has changed plans to produce robotaxi instead. However, the production volume for these vehicles may be lower than what the has planned for Model 2.

There are no official details on the actual plans of the company on this matter but it may be true.

Over the past three months, Tesla has made huge progress with its full self-driving (FSD) technology. The company may have been looking to implement this tech on its robotaxi project.

FSD subscribers have suggested that FSD has become more smoother and human-like in driving. It is by far the most advanced driving system ahead of any carmaker at the moment.

The company may want to capitalize on this prowess and put it into action.

The report also mentioned that the company could revert its plans to launch a low-cost vehicle based on the market condition.