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Elon Musk has confirmed that Tesla's priorities have shifted away from producing the affordable $25,000 customer-oriented car.
Musk states that Tesla is now focusing on the two-seater autonomous Cybercab, which lacks a steering wheel, pedals, or any means for driver control.
Musk made these comments in response to a Tesla fan on X who goes by the username “Tesla Chan.”
Tesla Chan initially wrote…
“I think Cybercab production should be more important and prioritized over new vehicles on new production lines (such as the $25,000 vehicles).
This may be an unpopular opinion, but Tesla should go all in on autonomy.”
Musk confirmed this sentiment by simply replying “Yes.”
It seems Elon is steering Tesla fully towards autonomy; however, looking at the comments, even Tesla fans don’t seem happy with Musk’s decision.
A fellow Tesla fan, David J, writes…
“Why not just make a variant with a wheel and pedals? It would get you to 20 million vehicles fast!”
Another Tesla fan writes…
“Put a steering wheel on the Cybercab, sell it for $25k.”
A third Tesla fan, EV Martin, writes…
“Ok. But as long as we don't have FSD in Europe, you might as well build a cheaper model in Berlin first.”
A fourth Tesla fan, George, writes…
“If autonomy keeps slipping, prioritizing it over proven demand for affordable EVs could backfire hard.”
A fifth Tesla fan writes…
“You have enough engineers, why not both vehicles?
A sixth Tesla fan writes…
“Tesla can do both! The world needs more EVs.”
Looking at the comments, even Tesla fans don’t seem too happy with Musk’s decision to cancel work on the affordable vehicle.
That said, it makes sense that Musk wants Tesla to prioritize creating a highly optimized, fully autonomous vehicle and a profitable robotaxi service over a low-margin $25,000 car.
However, the issue is that Musk has been promising for nine years that Tesla’s level 5 robotaxi service is only a year away.
Meanwhile, together with the company’s focus on autonomy, a lot of people seem to want Tesla to produce a compact car.
This move could help Tesla achieve its goal of a 50% compound annual vehicle sales growth rate.
A few years ago, before Elon Musk became distracted with other ventures, Tesla’s sales were growing rapidly. The company even used to claim in its earnings reports and earnings calls that the goal was to sell 20 million vehicles annually by 2030.
This would make Tesla the biggest automaker by far, selling twice as many vehicles as Toyota, which sells 10 million each year.
But in the last two years, Tesla's sales have stagnated. The company has struggled to hit the two-million-vehicle mark, and sales seem flat again this year.
Tesla also quietly cut the 2030 production target from its earnings report, suggesting a shift to a lower production goal.
Now, the plan to produce 20 million vehicles annually has changed to a goal of producing that many over several years.
Given these demand problems, launching a compact car could be a good move for Tesla.
Especially considering that the majority of vehicles sold in the US cost below $30,000.
Globally, including in China, the most popular vehicle, like the BYD Seagull, starts at just $9,000.
That said, similar to Tesla Chan, many Tesla fans support Elon Musk’s focus on the Cybercab.
For example, a fellow Tesla fan, Sadok, writes…
“The future doesn’t have a steering wheel.”
However, please let me know what you think in the comments. Share your ideas by clicking the red “Add new comment” button below. Also, be sure to visit our site, torquenews.com/Tesla, regularly for the latest updates.
For more information, check out: A Tesla Cybertruck Owner Says His Brand-New Truck Came With a Rodent’s Nest & Feces – He Adds, “The Foul Odor Has Dampened My Excitement For My $97,000 Vehicle”
Tinsae Aregay has been following Tesla and the evolution of the EV space daily for several years. He covers everything about Tesla, from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.
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