 "Tesla to unveil robotaxi on August 8, budget EV not cancelled, says Elon Musk")
Tesla CEO Elon Musk has announced plans to introduce a robotaxi on August 8th, shortly after a Reuters report revealed the company’s decision to abandon its efforts to produce a low-cost electric vehicle (EV).
The report suggested that Musk directed Tesla to focus entirely on developing robotaxis utilizing the company’s small-vehicle platform, contradicting previous statements about an affordable EV.
The abandoned project, internally known as “Redwood” and speculated to be Tesla’s anticipated “Model 2,” was aimed at producing 10,000 vehicles per week. The vehicles would be sold to customers at a starting price of $25,000.
Musk had expressed commitment to this endeavour, stating, “We’ll be sleeping on the line” to ensure its realization. Earlier, Tesla had hinted at the development of two new EV models with potential sales reaching up to five million units annually.
Musk’s strategic approach has long emphasized leveraging profits from luxury vehicles to finance more accessible models. This approach was outlined in Tesla’s 2006 “Secret Tesla Motors Master Plan,” where Musk underscored the role of high-end cars in funding the development of budget-friendly options.
Musk has categorically denied Reuter’s report, saying they what they have reported isn’t true. However, he did not offer any countermeasures or arguments to elaborate his claim.
In case the cancellation of the budget model is true, Tesla’s cheapest offering remains the Model 3 sedan, starting at $39,000. The axed budget model was anticipated to enter the market at around $25,000. That would be a major blow for the EV as it looks to enter the Indian market, along with several other price-sensitive markets,
Impact Shorts
More ShortsHow Tesla goes about with its robotaxi business will be interesting indeed. Years ago, in order to cut costs, the company switched over to a camera-only system and dropped radar and other sensors. All other robotaxi companies like Waymo extensively use a ton of other data from tons of different sensors.
Tesla faces other challenges as well. Firstly the entire EV market is facing a slowdown in demand across the world. Secondly, Tesla faces very stiff competition in China, one of the most difficult and competitive markets for EVs. Even though companies like BYD BYD dominate the entry-level market.
Despite BYD’s reported sales growth, Tesla disclosed a decline in deliveries both year-over-year and quarter-over-quarter.
(With inputs from agencies)
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