- Tesla CEO Elon Musk calls a $25,000 EV “pointless and silly”
- Musk envisions an autonomous future for vehicles
- He emphasizes the importance of making EVs accessible to all
During Tesla’s third-quarter earnings call, CEO Elon Musk shifted his stance on the $25,000 electric vehicle he had previously endorsed.
Musk stated that Tesla would only produce a $25,000 EV if it were designed as a robotaxi for autonomous ride-sharing, responding to inquiries about when investors might see a conventional EV at that price, as reported by InsideEVs.
“Essentially, having a standard $25,000 model is pointless. It would be foolish. It contradicts our beliefs,” Musk remarked, reiterating that “the future is clearly autonomous.”
Tesla Robotaxi Cybercab
Earlier this month, Tesla unveiled its vision for the future, showcasing the autonomous Cybercab and Robovan concepts. Musk stated that the two-seater Cybercab, which lacks a steering wheel and pedals, would be available “before 2027” at a cost of under $30,000. This comprehensive approach to autonomous driving has emerged relatively recently.
Since 2020, Musk has discussed a $25,000 Tesla, highlighting the concept of an appealing entry-level EV during Tesla’s Battery Day presentation. At that time, he indicated that affordability would be achieved through the scaling of large-format batteries and advancements in chemistry, such as lithium iron phosphate (LFP), with expectations that the $25,000 EV would launch by 2023.
Since then, Tesla has sent mixed messages regarding the project. In 2021, a senior Tesla official in China mentioned that the affordable EV was under development. Later, Musk contradicted this, stating that the focus was on the robotaxi initiative.
$25,000 Tesla teased for 2023 – Battery Day
In January of this year, Tesla reportedly reached out to suppliers to prepare for an affordable model anticipated to debut in 2025, with expectations of producing over 500,000 units annually for the project codenamed Redwood.
However, during a subsequent presentation and Q&A session for investors, neither Tesla nor Musk mentioned the $25,000 Tesla initiative. Nevertheless, Musk commented on the need for such a model, explaining that many of the top-selling internal combustion vehicles worldwide are priced lower than the current Model Y and Model 3. Despite an April report suggesting the project had been scrapped, Musk’s recent statements in the Q3 investor call indicate that the discussion is not completely over.
During the same call, Musk underscored the necessity of making EVs accessible to all, stating, “We need to make EVs affordable for everyone, including ensuring that the total cost of ownership is competitive with all transportation options.” He further noted that “work is continuing on new vehicles—including more affordable models—which we aim to launch in the first half of 2025.”
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