- A $25,000 EV is absurd and stupid, according to Tesla CEO Elon Musk
- The future is autonomous in Musk's view
- But Musk emphasized that we need to make EVs affordable for everyone
On the automaker's third-quarter earnings call, Tesla CEO Elon Musk hinted at the idea of a $25,000 electric car it had been promoting.
Tesla will only build a $25,000 EV as a robotaxi designed for autonomous ride sharing, Musk said in response to a question about when investors can expect a regular EV from the automaker at that price point, according to an exchange summary from InsideEVs.
“Basically, having a routine The $25,000 model is absurd. It would be stupid. It would be totally against what we believe,” Musk said, adding “I think we've been clear that the future is autonomous.”
Tesla Robotaxi Cybercab
Tesla revealed its vision of this future in the form of the autonomous Cybercab and Robovan at an event in early October. The Cybercab, a two-seater with no steering wheel or pedals, will be launched “before 2027” and cost less than $30,000, Musk said at the event. But this automatic driving method is a recent development.
Musk discussed plans to a $25,000 Tesla from 2020, when he made a “compelling” idea for an entry-level EV focused on Tesla's Battery Day presentation. At the time, Musk said affordability would be driven in part by the rise of large-format batteries and advanced chemistries—including lithium iron phosphate (LFP)—and that the $25,000 EV would arrive by 2023.
Tesla has sent conflicting signals on the project since then. In 2021 Tesla's top executive in China said an affordable EV is still being developed there. After some time Musk said that the company was not working on $ 25,000 EV, and that the robotaxi project is very important.
$25,000 Tesla teased for 2023 – Battery Day
In January of this year, it was reported that Tesla called suppliers to prepare an affordable model that will arrive in 2025. The report's sources say the total annual output of the model, codenamed Redwood, is more than 500,000 units.
At the presentation and Q&A for investors the next day, neither the company nor Musk explained Tesla's $25,000 project. However, Musk talked about some reasons for such a model, noting that many of the best-selling internal combustion cars around the world are currently less expensive than the Model Y and Model 3. Another report in April said the project was completely finished, which combined with Musk's comments on the Q3 investor call, seemed to be the end of the story. But that's not the case.
During the same call, Musk also said “we need make EVs affordable for everyone, including making the total cost of ownership per mile competitive with all modes of transportation,” adding that “Preparations are underway for our new vehicle offerings—including affordable models-which we will start rolling out in the first half of 2025.”