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Tesla abandons low-cost car amidst fierce Chinese EV competiton

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2 years ago

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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.

READ MORE – The battery set to change Electric Vehicles and Tesla’s market share

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.

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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.

Tech

Global memory chip shortage set to drive electronics prices higher

Global memory chip shortage raises electronics prices; impacts PCs, smartphones, and likely continues until 2026.

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3 days ago

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January 9, 2026

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Global memory chip shortage raises electronics prices; impacts PCs, smartphones, and likely continues until 2026.


A severe global shortage of memory chips is sending shockwaves through the electronics industry, causing prices to rise across consumer devices. Experts warn that this shortage will continue until at least 2026, affecting everything from PCs to smartphones.

Major manufacturers, including Samsung Electronics, have reported record profits but caution that rising memory chip prices could put further pressure on the sector. This shortage is largely driven by AI technology demands, forcing companies to rethink production priorities.

Consumers should expect higher costs for electronics in the coming months, with price increases likely to continue through the end of 2026.

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#ChipShortage #ElectronicsPrices #SamsungNews #AIChips #TechIndustry #PCPriceHike #SmartphoneCosts #TickerNews


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CES 2026 Highlights: AI, robotics, and the future of innovation

CES 2026 explores AI, robotics, and sustainability, reshaping the global economy and redefining productivity and market dynamics.

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4 days ago

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January 8, 2026

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CES 2026 explores AI, robotics, and sustainability, reshaping the global economy and redefining productivity and market dynamics


CES 2026 in Las Vegas is showing how technology is not just shaping consumer products but redefining the global economy. From AI breakthroughs to robotics innovations, the event highlights how new technologies are changing the way we work, move, and invest.

Brad Gastwirth from Circular Technologies joins us to share his insights on the biggest trends driving this transformation.

The event underscores the growing role of AI in shaping both market dynamics and consumer demand patterns, signalling a new era of innovation.

Robotics, mobility, and sustainability are also at the forefront. From real-time AI-driven mobility tech to energy-efficient computing, CES demonstrates how emerging technologies are integrating across sectors. Brad discusses the intersections of technology, sustainability, and capital expenditure, revealing how these trends are set to reshape productivity paradigms and sector leadership in the coming years.

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#CES2026 #AIRevolution #Robotics #Innovation #MobilityTech #SustainableTech #TechTrends #TickerNews


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CES 2026 opens with AI powering the future of tech

AI dominates CES 2026 in Las Vegas, shaping future tech with smarter, personalized products for everyday use.

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4 days ago

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January 8, 2026

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AI dominates CES 2026 in Las Vegas, shaping future tech with smarter, personalized products for everyday use.


The annual Consumer Electronics Show has officially opened in Las Vegas, with artificial intelligence taking centre stage across nearly every major product category on display. From consumer gadgets to enterprise tools, AI is shaping how technology is designed, used and experienced.

Major tech companies are showcasing smarter, faster and more personalised products, highlighting how AI is moving beyond concepts and into everyday applications. The focus this year is on practicality, efficiency, and seamless integration into daily life.

As CES continues, the event is setting the tone for where technology is heading in 2026, with AI no longer an add-on but a foundation for innovation.

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#CES2026 #ArtificialIntelligence #TechNews #Innovation #FutureTech #LasVegas #AIRevolution #Ticker


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