Tesla has been under fire from investors and the public after it abruptly decided to abandon its cheap mass-market EV and prop up its efforts to build a self-driving robotaxi that it calls the CyberCab. Now, we might know what really happened behind closed doors.
A new report from The Information reveals that Musk’s rash decision not only rushed the upcoming robotaxi to the top of the company’s priority list but also killed off the would-be hit, a “slimmed-down” $25,000 version of the Model Y.
Get Fully Charged
Tesla’s Quest For Autonomy
Tesla CEO Elon Musk has been promising a self-driving car every year since 2014. Now, a decade ready, Musk wants to reveal a car without a steering wheel or pedals by August—and former employees don’t think that’s plausible.
According to the report fueled by accounts from former employees, the fiasco started during two executive-level meetings held during a single week in February. During the first meeting, Musk’s lieutenants pitched the cheap “Model 2” (codenamed NV91, or “New Vehicle 91”) as Tesla’s new home run. It would do this by meeting a price target set by Musk years prior and slimming down Tesla’s most popular vehicle, the Model Y.
From The Information:
In the first, Musk’s lieutenants showed him the latest full-size version of a budget-priced
crossover SUV, a car that resembled a slimmed-down Model Y. The vehicle—which people outside Tesla had dubbed the Model 2—was on track for mass production in the second half of 2025 and would be priced at roughly $25,000.
Musk has been enamored by the idea of an even cheaper EV from the moment he revealed it on stage with former engineering executive Drew Baglino at Tesla’s first Battery Day event in 2020.
“This has always been our dream from the beginning of the company,” said Musk.
His idea was to use Tesla’s already-efficient manufacturing method combined with even cheaper battery tech to shave a considerable amount of money off the price tag. However, what kicked the cheaper car off Musk’s radar wasn’t the price tag—it was the CyberCab.
A second meeting last February between Musk and the same lieutenants focused on a conceptual future product. The executives pitched a driverless robotaxi concept codenamed NV93. And Musk was reportedly floored by the idea.
According to the report, the product pitch was only meant to appease Musk’s appetite for future products, but Musk wanted to know why Tesla wasn’t executing that idea immediately. After all, he’s been promising a fully autonomous car since 2016, even if the product wasn’t approved by regulators or fully developed.
An about-face took place immediately. NV91 was reportedly canceled (the cancellation was later walked back to place the car on the back-burner following investor criticism) and the teams were to focus on NV93. Musk subsequently tried to pitch China on the idea of robotaxi testing in Shanghai during a visit to the country last month and told the world that they would be unveiling the car on August 8th.
A short timeline for Tesla isn’t that hard to believe, especially given that executives have publicly admitted to being placed on extremely short deadlines. For example, the Cybertruck prototype was designed in just 93 days.
“He turns the barge like it’s a speedboat,” said an unnamed former middle-ranking executive in an interview with The Information.
Sure, the two had similarities—namely, the traction battery and drive motor—but so do the Model 3 and Y. What those platforms don’t share, however, is the target customer.
The NV91 earns Tesla a quick lump-sum payment and will be used by someone who will sit behind the wheel for their daily drives and expects some level of usability and comfort. The NV93 is an operating expense aimed at achieving the lowest cost per mile. Additionally, the CyberCab would need to be durable and widely accessible, and it would have to withstand a myriad of abuse from passengers who would be using it for short-term commutes, presumably with no driver behind the wheel.
Tesla is in for a wild ride moving forward. Multiple former employees told The Information that the robotaxi is “a long way from ready to release,” which means that Tesla will undoubtedly push it back. That move could test the patience of investors as Tesla’s stock has already tumbled over 32% this year alone. Meanwhile, Tesla has asked those same investors to vote on whether or not to reinstate Musk’s $56 billion pay package.
Tesla’s $25,000 Car Could Be ‘A Slimmed Down Model Y’: Report
Tesla, the American electric vehicle manufacturer, has long been at the forefront of innovation in the automotive industry. Known for its high-performance electric cars and cutting-edge technology, Tesla has been leading the charge towards a sustainable future for transportation. Now, reports suggest that Tesla is planning to release a new, more affordable electric vehicle priced at $25,000.
According to a recent report from Reuters, Tesla’s $25,000 car could be a “slimmed down Model Y,” the company’s popular compact SUV. The new vehicle is expected to be smaller and more affordable than the current Model Y, which starts at around $40,000. This move is in line with Tesla CEO Elon Musk’s goal of making electric vehicles more accessible to a wider range of consumers.
The $25,000 car has been a long-standing goal for Tesla, as Musk has previously stated that the company plans to release a mass-market electric vehicle at this price point. With the reported ”slimmed down Model Y,” Tesla could be one step closer to achieving that goal.
Tesla’s push towards more affordable electric vehicles could have a significant impact on the automotive industry as a whole. As more consumers look to make the switch to electric vehicles, offering a more affordable option could help accelerate the transition away from traditional gas-powered cars. This could lead to a decrease in greenhouse gas emissions and a reduction in air pollution, as electric vehicles are cleaner and more sustainable than their gas-powered counterparts.
However, there are still challenges to overcome in making electric vehicles more accessible to the general public. One major hurdle is the cost of batteries, which are a key component in electric vehicles. Tesla has been working on improving battery technology and reducing costs, but further advancements will be needed to make electric vehicles truly competitive with gas-powered cars.
Despite these challenges, Tesla’s $25,000 car could mark a significant step forward in the company’s mission to accelerate the world’s transition to sustainable energy. With its track record of innovation and success, Tesla has the potential to revolutionize the automotive industry once again with its more affordable electric vehicle offerings.
In conclusion, Tesla’s reported plans to release a $25,000 electric vehicle could have far-reaching implications for the automotive industry and the transition towards sustainable transportation. By offering a more affordable option, Tesla could make electric vehicles more accessible to a wider range of consumers, driving the adoption of clean energy technologies and leading the way towards a greener future for transportation.