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Tesla abandons low-cost car amidst fierce Chinese EV competiton

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1 year 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.

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Tech

Trump extends TikTok sale deadline by 90 days

Trump extends TikTok’s sale deadline to US owner by 90 days, ensuring continued access for American users.

Published

19 hours ago

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June 20, 2025

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Trump extends TikTok’s sale deadline to US owner by 90 days, ensuring continued access for American users.

In Short:
President Trump extended the deadline for TikTok’s parent company, ByteDance, to sell the app to an American owner by 90 days, allowing it to operate in the U.S. until September 17, 2025. He hopes for a deal with China while maintaining TikTok’s presence for its 170 million U.S. users amidst security concerns.

President Donald Trump has extended the deadline for TikTok’s parent company, ByteDance, to sell the app to an American owner by another 90 days.

The executive order signed by Trump allows the Chinese company to continue operating in the U.S. until September 17, 2025. Trump announced the extension on Truth Social, expressing hope for a deal with Chinese President Xi Jinping.

During a flight on Air Force One, Trump suggested that Xi would be willing to approve a sale if a buyer appeared. White House Press Secretary Karoline Leavitt emphasised the administration’s aim to keep TikTok available for American users while ensuring data security.

TikTok has approximately 170 million users in the U.S., with declining support for a ban, according to Pew Research. An initial ban on the app, instituted under the Biden Administration over national security issues, briefly took effect but was reversed after Trump indicated he would allow TikTok to continue.

TikTok has asserted that it does not pose any security threats to the U.S. and that American data is not stored in China. Following the extension, users have returned to TikTok, with reduced engagement on competing platforms.

Past potential buyers include Amazon and Reddit co-founder Alexis Ohanian, though no sale was finalised due to trade tensions. Under U.S. law, ByteDance must sell TikTok to a U.S. buyer, but the company has remained silent about its intentions.

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Smart glasses could replace smartphones by 2035

“Experts predict smart glasses powered by AI will replace smartphones by 2035, transforming our tech interactions.”

Published

3 days ago

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June 18, 2025

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“Experts predict smart glasses powered by AI will replace smartphones by 2035, transforming our tech interactions.”


Smart Glasses Could Replace Smartphones by 2035 — Experts say wearable tech powered by AI is on track to replace smartphones within a decade. T

These sleek, voice-first devices are poised to transform how we interact with technology, with tech giants investing heavily in the space. Will your next phone fit on your face?

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#SmartGlasses #TechRevolution #AI #Wearables #FutureTech #BigTech #VoiceFirst #NextGenDevices

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AI will reduce Amazon workforce, CEO Andy Jassy predicts

Amazon CEO predicts AI will shrink workforce, altering job types, but won’t lead to immediate mass layoffs.

Published

3 days ago

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June 18, 2025

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Amazon CEO predicts AI will shrink workforce, altering job types, but won’t lead to immediate mass layoffs.

In Short:
Amazon CEO Andy Jassy warns that advancements in artificial intelligence may reduce the workforce over time, primarily through attrition rather than mass layoffs. Many industries, including retail, are adopting AI, which could lead to job cuts while creating new specialised roles.

Amazon CEO Andy Jassy has indicated that advancements in artificial intelligence (AI) will likely lead to a decrease in the workforce within the company in the coming years.

In a recent communication to employees, Jassy described generative AI as a transformative technology that is already changing Amazon’s operations and customer interactions.

While he did not specify the exact extent of job reductions, he acknowledged that improvements in efficiency through AI would result in fewer roles.

Upcoming changes will primarily occur through attrition rather than mass layoffs, as seen in previous years. Certain teams may face layoffs, particularly those related to products like Alexa.

Impacts of AI

Jassy’s remarks are among the strongest from a large corporation regarding the potential impacts of AI on employment.

Various industries, including retail and pharmaceuticals, are adopting AI for multiple functions, which necessitates new job roles but also implies potential job cuts.

Surveys show a significant percentage of employers anticipate downsizing their workforce as a result of AI.

In the tech sector, many companies are prioritising the hiring of individuals with AI skills, as AI tools become integral to business efficiency.

Amazon plans to heavily invest in AI infrastructure. Jassy noted that the company is developing over 1,000 AI agents to enhance its productivity.

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