Tesla executives questioned Musk after he denied killing $25,000 EV project, sources say

Some senior Tesla executives were alarmed when Elon Musk publicly denied a Reuters report in April 2024 that Tesla had canceled its planned $25,000 electric vehicle, known informally as the Model 2. Despite Musk’s denial on X, internal sources confirm the project had already been scrapped in favor of focusing on self-driving robotaxis. His post briefly helped Tesla’s stock recover, though confusion arose among executives who questioned whether he had reversed his decision—he had not. The cancellation raised concerns about Tesla’s failure to deliver an affordable mass-market EV, a key promise of the company. Meanwhile, rival BYD is gaining ground globally, especially in the affordable EV segment. As of now, Tesla has not released a low-cost model and has not confirmed the cancellation publicly.

Credit : CGTN