Elon Musk says building USD 25,000 Tesla for human drivers ‘pointless’

Tesla CEO Elon Musk has ditched plans for a USD 25,000 electric vehicle unless it is driverless — and declared the idea ‘pointless.’ Asked in an October 23 earnings call how the long anticipated car would be funded when annual spending was likely to grow at a sharp rate, Musk said that was Tesla’s future.

But Musk's comments represent a sharp about face after earlier statements including ones made earlier this year when Musk confirmed that Tesla hopes to introduce a new, less expensive EV in 2025. This ‘Model 2’ had been the holy grail of expectations for investors, who had long been waiting for Tesla to offer a new, less expensive model, the Model 3, priced at USD 42,490, followed by the Model 2. In recent months, though, Musk has become fixated on a self-driving cars as the foundation of Tesla’s future technology, abandoning the USD 25,000 car for human drivers.

"Our first non robo isn’t ready where we are just saying." Before he was interrupted by another Tesla executive, Musk began. He quickly clarified, saying: The bottom line is — I think having a USD 25K regular model is kind of pointless. It would be silly.”

This admission comes after a Reuters report last month that Tesla had abandoned plans for a non-autonomous, mass market EV and was doubling down on a fully autonomous "robotaxi." During the earnings call, Musk confirmed that Tesla is now starting work on 'a Cybercab,' or a two-door, two seat autonomous car priced around USD 25,000. Next year will see the company rolling out fully self driving versions of its Model 3 and Model Y in Texas and California before the Cybercab enters production in 2026.

It's an about face from ambitions to use self-driving vehicles to roll out affordable EVs to the masses.

While Musk once set a goal of producing 20 million cars annually by 2030, this target has since been removed from Tesla's sustainability report, suggesting a shift in priorities as the company grapples with the technological and regulatory challenges of autonomous driving.

Tesla has yet to respond to requests for further comment on its future plans for affordable, non-autonomous vehicles.