The decision represents an abandonment of a longstanding goal that Tesla chief Elon Musk has often characterized as its primary mission: affordable electric cars for the masses. His first “master plan”, opens new tab for the company in 2006 called for manufacturing luxury models first, then using the profits to finance a “low cost family car.”
Tesla shares were down about 3% in early afternoon trading after the Reuters report.
Musk has since repeatedly promised such a vehicle to investors and consumers. As recently as January, Musk told investors that Tesla planned to start production of the affordable model at its Texas factory in the second half of 2025, following an exclusive Reuters report detailing those plans.
I had the exact same question after reading the article.
Chinese evs are cheap and their build quality is rapidly improving.
Tesla roofs and doors fall off so he’s going to keep prices the same?
Without a cheap Tesla equivalent, I don’t see how Tesla maintains its market share unless the Chinese manufacturers make a suicidal move and start pricing their cars higher than Tesla.