Tesla Ditches Plans for $25,000 EV

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Tesla has dropped plans to produce a $25,000 EV.

As Reuters reports , CEO Elon Musk was asked during an earnings call Q&A about when to expect a $25,000 "non-robotaxi regular car model." Musk responded that "the future is autonomous," pointing to the Cybercab that Tesla unveiled last month .

"It should be blindingly obvious" that that's the direction Tesla is taking, Musk added, arguing that "having a regular $25K model is pointless."

In December 2023, however, Musk said Tesla was "obviously...working on a low-cost electric vehicle that'll be made at very high volume." And when Reuters reported in April that Tesla had canceled plans for a $25,000 EV to , Musk  the article was incorrect.

According to Tesla, "what matters [now] is lowest cost per mile of efficiency." Musk said the Cybercab will be around $25,000 to produce and available to purchase in some capacity, but it won't have a steering wheel, so it wouldn't be like purchasing a Model 3 or Cybertruck today.

However, Tesla plans to start fully autonomous, unsupervised Full Self-Driving in Texas and California next year for its Model 3 and Model Y EVs.