Archive · 2 Jun 2025
Musk's Denial of Cheaper EV Plan Confuses Tesla Executives
Elon Musk, Tesla's CEO, denied reports that the company scrapped plans for a cheaper electric car.
This surprised some executives who knew the project was shelved in favor of robotaxis.
Musk publicly refuted the news, causing confusion among managers.
The original plan for a new $25,000 EV was changed.
Instead, Tesla will release more affordable Model 3 and Model Y versions in 2025.
These will use existing manufacturing lines.
Tesla is still working on these affordable models.
Elon Musk denied Tesla had scrapped plans for a cheaper EV.
Some Tesla executives were reportedly aware the project was cancelled.
The denial caused confusion among senior managers.
Tesla shifted focus to affordable Model 3 and Model Y versions.
New affordable models are expected in the first half of 2025.
- Who
- Elon Musk, Tesla executives, and Reuters.
- What
- Elon Musk denied Tesla had scrapped the plan for a cheaper EV, which was a reversal of the original decision.
- When
- April 2024 (Musk's denial), and the first half of 2025 (expected release of affordable models)
- Where
- Tesla, via social media platform X (formerly Twitter).
- Why
- To address reports about the cheaper EV project, and to clarify Tesla's plans.
Tesla Executives' View
Elon Musk's View
Cheaper EV Plan
Tesla Executives' View
The cheaper EV project was shelved.
Elon Musk's View
The project was never scrapped. Tesla is still working on affordable EVs.
- CEO
- Elon Musk
- Original Plan
- A new $25,000 EV
- New Plan
- Simplified Model 3 and Model Y
- Release Timeline
- First half of 2025
- Focus Shift
- Self-driving robotaxis