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Tesla abandons low-cost car amidst fierce Chinese EV competiton

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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.

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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Are silent vehicles putting pedestrians at risk?

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A recent study suggests that EVs and hybrids are more likely to be involved in pedestrian collisions compared to traditional internal combustion engine vehicles.

One possible explanation for this phenomenon is the quieter operation of electric vehicles at lower speeds, which can catch pedestrians off guard, particularly those who are visually impaired or distracted.

To counter this issue, all new EVs in Australia will be outfitted with AVAS – an audible alert to pedestrians to indicate a EV is headed in their direction.

Mike Costello from Cox Automotive joins to discuss. #featured

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Can big tech be trusted to use AI ethically?

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Big tech giants like Google, Microsoft, and IBM announced comprehensive plans to enhance AI safety measures – but is that enough to convince the everyday worker?

On this episode of Ahron & Mike Live – Can big tech be trusted with AI? “The Fall Guy” takes a hard hit, Apple’s Top Ten controversy and a robot performs surgery on a piece of corn.

Ticker’s Ahron Young & Mike Loder discuss. #featured

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OpenAI terminates AI risk protection team

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Less than a year after its inception, OpenAI has made the decision to dissolve its team dedicated to researching long-term risks associated with AI.

The team, formed with the intention of studying and mitigating potential risks stemming from advanced AI systems, was a notable part of OpenAI’s broader mission to ensure that AI is developed and used responsibly.

Dr Karen Sutherland from University of the Sunshine Coast #featured

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