Tesla has made a significant shift in its strategy, abandoning plans for the long-anticipated affordable electric car, according to sources familiar with the matter and company messages.
Tesla cancels plans for a low-cost electric car, shifting focus towards developing self-driving robotaxis, in a departure from Elon Musk’s earlier vision of mass-market affordability.
The decision comes amidst fierce competition from Chinese electric vehicle makers offering significantly cheaper options, posing challenges to Tesla’s growth targets and market dominance.
Despite the cancellation, Tesla’s future plans for robotaxis remain uncertain, while the company faces scrutiny over various issues including regulatory hurdles and product quality concerns.
This decision marks a departure from Elon Musk’s earlier vision of providing affordable electric vehicles to the masses, opting instead to focus on developing self-driving robotaxis on the same platform.
Since Tesla’s inception, Musk has repeatedly promised an affordable electric car, often considered a cornerstone of the company’s mission. However, the cancellation of this project underscores the growing challenges Tesla faces in the increasingly competitive electric vehicle market, particularly against Chinese automakers offering significantly lower-priced options.
The decision to scrap the affordable car project was reportedly communicated to employees in a meeting held in late February.
Instead, Tesla will prioritise the development of self-driving robotaxis, albeit in lower volumes than initially projected for the affordable model.
Following the Reuters report, Tesla’s stock experienced a significant drop, only to rebound slightly after Musk’s social media post announcing an upcoming unveiling event for the Tesla Robotaxi.
This shift in focus comes amidst intense competition from Chinese electric vehicle manufacturers offering cars priced as low as $10,000.
Musk’s vision
While Tesla’s decision to pivot away from the affordable car strategy may disappoint investors and consumers, it reflects Musk’s vision of prioritising the development of autonomous driving technology, which he believes represents the future of mobility.
The cancellation of the affordable car project poses challenges for Tesla’s ambitious growth targets, including Musk’s goal of selling 20 million vehicles by 2030.
The delay in pursuing a low-cost option has allowed Chinese automakers to gain market share and offer competitive pricing, putting pressure on Tesla’s market dominance.
Tesla’s future plans for robotaxis remain unclear, as the company continues to face regulatory hurdles and technical challenges in achieving fully autonomous driving capabilities.
Nonetheless, Musk remains optimistic about the potential of self-driving cars to revolutionise transportation.
Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.
In Short:
– Airbus warns over half of A320 fleet needs software fixes due to potential data corruption risks.
– Affected airlines must complete upgrades before next flights, with operational disruptions anticipated during a busy travel season.
Airbus has issued a warning regarding its A320 fleet, indicating that over half of the active jets will require a software fix.
It follows a recent incident involving a JetBlue Airways aircraft, where “intense solar radiation” was found to potentially corrupt data crucial for flight control system operation.
The European plane manufacturer stated that around 6,500 jets may be affected. A regulation mandates that the software upgrade must occur before the next scheduled flight.
Operational disruptions for both passengers and airlines are anticipated. The issue arose from an incident on October 30, where a JetBlue flight experienced a computer malfunction that resulted in an uncommanded descent. Fortunately, no injuries occurred, but the malfunction of an automated computer system was identified as a contributing factor.
Airlines, including American Airlines Group, have begun to implement the required upgrades.
The majority of affected jets can receive an uncomplicated software update, although around 1,000 older models will necessitate an actual hardware upgrade, requiring grounding during maintenance.
Hungarian airline Wizz Air has also initiated necessary maintenance for compliance, potentially affecting flights. This announcement has surfaced during a busy travel season in the US, with many facing delays due to other factors as well.
Regulatory Response
The European Union Aviation Safety Agency has mandated that A320 operators replace or modify specific elevator-aileron computers. The directive follows the JetBlue incident, where a malfunction led to a temporary loss of altitude.
Airbus’s fix applies to both the A320 and A320neo models, representing a vital response in ensuring aircraft safety.
China blocks ByteDance from using Nvidia chips, tightening tech control and pushing for domestic AI innovation amid U.S. restrictions.
Chinese regulators have moved to block ByteDance from deploying Nvidia chips in newly built data centres, tightening control over foreign technology used by major Chinese tech giants. The decision comes after ByteDance made substantial purchases of Nvidia hardware amid fears of shrinking supply from the United States.
Washington has already restricted the sale of advanced chips to China, allowing only weakened versions into the market. Beijing’s latest move reflects its push to reduce dependence on U.S. technology and accelerate home-grown AI innovation.
The ban places operational and financial pressure on ByteDance, which must now work around a growing pile of Nvidia chips it is no longer allowed to use. Domestic suppliers like Huawei are expected to step in as China intensifies its pursuit of tech self-reliance.
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In Short:
– OpenAI’s “shopping research” tool helps users find detailed shopping guides tailored to their preferences.
– Users can access Instant Checkout for purchases while ensuring user chats are not shared with retailers.
OpenAI has launched a new tool called “shopping research,” coinciding with an increase in consumer spending ahead of the holiday season.This tool is aimed at ChatGPT users seeking comprehensive shopping guides that detail top products, key differences, and the latest retailer information.
Users can customise their guides based on budget, features, and recipients. OpenAI notes that while the tool takes a few minutes to generate responses, users can still use ChatGPT for quicker queries like price checks.
When users ask specific prompts, such as finding a quiet cordless stick vacuum or a gift for a niece who loves art, the shopping research tool will appear automatically. It can also be accessed via the menu.
Shopping Research
OpenAI has been expanding its e-commerce capabilities, with the introduction of the Instant Checkout feature in September, enabling purchases directly through ChatGPT.
Soon, users of the shopping research tool will also be able to use Instant Checkout for making purchases.
OpenAI assures that shopping research results are derived from publicly available retail websites and will not disclose user chats to retailers, although it does warn that inaccuracies may occur in product availability and pricing.
Shopping research is now available to OpenAI’s Free, Go, Plus, and Pro users logged into ChatGPT.