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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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Tesla is slashing prices to stay competitive

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Tesla cut the U.S. prices of its Model Y, Model X and Model S vehicles by $2,000 each, days after the first-quarter deliveries of the world’s most valuable automaker missed market expectations.

Elon Musk’s electric-vehicle (EV) maker lowered the prices for its Model Y base variant to $42,990, while the long-range and performance variants are now priced at $47,990 and $51,490, respectively, according to its website.

The basic version of the Model S now costs $72,990 and its plaid variant $87,990. The Model X base variant now costs $77,990 and its plaid variant is priced at $92,900.
Tesla North America also said in a post on X said it would end its referral program benefits in all markets after April 30.

Referral program allows buyers to get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

Musk has postponed a planned trip to India where he was to meet Prime Minister Narendra Modi and announce plans to enter the South Asian market, Reuters reported on Saturday.
On Monday Reuters reported, citing an internal memo, that the EV maker was laying off more than 10% of its global workforce.
Earlier this month Reuters reported the EV maker had canceled a long-promised inexpensive car, expected to cost $25,000, that investors had been counting on to drive mass-market growth.
The EV maker reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand.

Tesla is to report first-quarter earnings on Tuesday.

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TikTok launches Instagram competitor ‘Notes’

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TikTok Notes has launched in Australia & Canada as a formidable competitor to Instagram, offering a unique platform for content creation, text and sharing.

“TikTok Notes is a lifestyle platform that offers informative photo-text content about people’s lives, where you can see individuals sharing their travel tips and daily recipes,” reads the official App Store description.

Take note

The app allows users to create content by combining short videos with text-based notes, closely resembling that of Meta’s Instagram.

Whether it’s sharing a quick tutorial, a personal anecdote, or a thought-provoking message, TikTok Notes is positioned to be a formidable social media platform.

Currently, the app is only available for download and “limited testing” in Australia and Canada.

As it gains momentum, the platform is poised to contest Instagram’s established reign in the social media landscape.

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Ramifications of a TikTok ban to impact Open Internet

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The United States’ longstanding advocacy for an open internet faces a critical juncture as Congress considers legislation targeting TikTok.

The proposed measures, including a forced sale or outright ban of TikTok, have sparked concerns among digital rights advocates and global observers about the implications for internet freedom and international norms.

For decades, the U.S. has championed the concept of an unregulated internet, advocating for the free flow of digital data across borders.

However, the move against TikTok, a platform with 170 million U.S. users, has raised questions about the consistency of America’s stance on internet governance.

Read more – Big tech to handover misinformation data

Critics fear that actions against TikTok could set a precedent for other countries to justify their own internet censorship measures.

Russian blogger Aleksandr Gorbunov warned that Russia could use the U.S. decision to justify further restrictions on platforms like YouTube.

Similarly, Indian lawyer Mishi Choudhary expressed concerns that a U.S. ban on TikTok would embolden the Indian government to impose additional crackdowns on internet freedoms.

Moreover, the proposed legislation could complicate U.S. efforts to advocate for an internet governed by international organizations rather than individual countries.

China, in particular, has promoted a vision of internet sovereignty, advocating for greater national control over online content.

A TikTok ban could undermine America’s credibility in urging other countries to embrace a more open internet governed by global standards.

 

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