Following today’s Reuters debacle declaring the demise of the $25,000 affordable Tesla—a claim swiftly refuted by CEO Elon Musk—a new twist emerges. Just hours later, Musk took to X (formerly Twitter) to announce the unveiling of the autonomous Tesla Robotaxi scheduled for August 8, 2024.
This announcement marks a significant milestone in Tesla’s journey. The concept of a self-driving people carrier was initially introduced in 2016, with scant details emerging since then. Walter Isaacson’s biography of Musk revealed a “Robotaxi Concept” along with early sketches of a “Gen 3” vehicle.
Initially, Musk insisted on creating an autonomous robotaxi devoid of pedals or a steering wheel. However, his team convinced him to prioritize the development of an affordable “global car” to propel the brand towards a lofty 50% annual growth target without compromising his vision.
While it’s known that both the robotaxi and the affordable mass-market EV share the same platform, details regarding their design and engineering overlap remain elusive. With the robotaxi’s unveiling announced before the affordable Tesla, the fate of the latter remains uncertain, especially amid reports claiming its cancellation.
Tesla’s messaging on this matter has been inconsistent, with past hints suggesting the affordable EV might precede the robotaxi. However, recent developments indicate a reversal, possibly influenced by Musk’s decisive intervention.
Musk’s timely announcement likely serves as a response to this morning’s Reuters report. Following his post, Tesla stock rebounded by 3% after earlier declines.
The upcoming Tesla model holds considerable importance for the company, particularly as investors express concerns about its business trajectory. Tesla shares have seen a 33% decline since the year’s onset, and Q1 sales figures were lackluster—a departure from the brand’s historical growth. Amidst rising competition and the influx of affordable Chinese EVs into the U.S. market, Tesla faces mounting challenges.
Experts argue that the $25,000 EV should have debuted before the Cybertruck, a polarizing model unsuitable for mass EV adoption. Nonetheless, Musk appears determined to proceed with the robotaxi initiative. The repercussions of this decision on the brand’s future will become apparent in the coming months.
