Reuters reported that Tesla has canceled the production plan of the highly anticipated $25,000 (Note: currently about 181,000 RMB) model. Affected by this news, Tesla’s stock price has been falling.
In response, Elon Musk responded that “Reuters is lying.” Tesla’s stock price then began to recover, but then began to fall again. The current offer price is about $165 per share, with a market capitalization of $518.483 billion.
Tesla has scrapped plans for a low-priced car and will continue to develop its self-driving taxi Robotaxi on its existing platform, three sources told Reuters. The decision marks Tesla’s abandonment of one of Elon Musk’s previously promised long-term goals: bringing affordable electric vehicles to the masses.
Elon Musk formulated the first “master plan” for Tesla in 2006, which called for first building luxury models and then using the profits from luxury models to support “low-cost family cars.”
Since then, Elon Musk has frequently mentioned plans for the low-priced model. For example, in January this year, Elon Musk also vowed to tell investors that Tesla planned to start production of this low-priced model at the Texas factory in the second half of 2025.
