Latest news with #Model2
Auto Blog
a day ago
- Automotive
- Auto Blog
New Report Highlights ‘Hidden Truth' Behind Tesla's Vanished $25K EV
Elon Musk denied Tesla was cancelling its $25k EV before later confirming the news was true—but the automaker's executives are said to have known all along. Elon Musk's denial of Tesla ending its $25k EV project divided the automaker's executives, report states Company documents and three people familiar with the matter say that Elon Musk raised significant concerns among some Tesla executives when he denied rumors of the automaker canceling its $25,000 electric vehicle (EV) project after the initiative was known as dead within the organization for weeks. On April 5, 2024, Musk posted on X, formerly Twitter, 'Reuters is lying (again),' after the publication reported Tesla's affordable EV, nicknamed the Model 2, as canceled. Reuters's Model 2 report triggered Tesla stock declines, but those losses didn't extend beyond 6% after Musk's denial on X. Musk reversed course months later during Tesla's Q3 earnings call in October, saying: 'Basically, having a regular $25K model is pointless. It would be silly. It would be completely at odds with what we believe,' according to Road & Track. The new Reuters report claims executives not only knew that Tesla was pivoting from the Model 2 weeks before Musk denied the project's cancellation, but also expected the robotaxi to take its place. 2025 Ford Maverick: 4 reasons to love it, 2 reasons to think twice Watch More Tesla badge — Source: Getty Some confused executives asked Musk whether he had changed his mind about ending the Model 2 initiative, to which the Tesla CEO is said to have replied that the project was still over. Other Tesla executives grew concerned about how investors and suppliers would react given their expectation of a new, more affordable vehicle, and feared the denial would hurt Tesla's sales since some were delaying purchases in hopes of a $25,000 EV. The Securities and Exchange Commission (SEC) might even view the statement as misleading investors about a future project that was part of the company's forecasts. Musk already settled with the SEC in 2018 for $40 million over a social media post, which the SEC claimed misled investors into thinking the billionaire would take Tesla private. Still, Musk's public denial didn't bother all Tesla executives, as some cited the automaker as considering various strategies for low-cost EVs over the years. Autoblog reached out to Tesla for comment but didn't receive a response. Tesla's new plans for more affordable EVs Earlier this year, Tesla confirmed its updated approach of using pre-existing model platforms to accelerate the release of new vehicles, including affordable cars, one of which was supposed to be a cheaper version of the Model Y, nicknamed E41, and the other being a stripped-down Model 3. However, the stripped-down Model Y will cost more than the originally planned $25,000 price tag, and Reuters's three sources state its US launch is being delayed with an updated release target of late 2025 or early 2026. Reliable reports haven't yet emerged about a stripped-down Model 3's production timeline and pricing. Late last week, a video was posted of a white Tesla SUV driving around the automaker's Fremont, California factory track with its front and rear covered, possibly indicating E41 trials. Tesla Newswire reposted the footage on X. White House Senior Advisor, Tesla and SpaceX CEO Elon Musk attends a Cabinet meeting at the White House on April 30, 2025 in Washington, DC. — Source: Getty Images Final thoughts Referenced in some of our previous articles on Tesla, Autoblog interviewed viral YouTuber and mechanic Scotty Kilmer, who seemed to sum up Musk's decision to publicly deny the Model 2's cancellation by saying: 'Value to him [Elon Musk] is stock market value. Stock market value isn't real value. It's pumped-up stuff. It used to be that the stock market was an investment. It isn't anymore. It's just outright riverboat gambling. His [Elon Musk] stock can go up billions of dollars or go down billions of dollars with whatever he says.' Since Musk's denial of the Model 2's end stopped a stock slide, it seems the Tesla CEO's public statement prioritized damage control instead of buyer and investor transparency. About the Author Cody Carlson View Profile
Miami Herald
a day ago
- Automotive
- Miami Herald
New Report Highlights ‘Hidden Truth' Behind Tesla's Vanished $25K EV
Company documents and three people familiar with the matter say that Elon Musk raised significant concerns among some Tesla executives when he denied rumors of the automaker canceling its $25,000 electric vehicle (EV) project after the initiative was known as dead within the organization for weeks. On April 5, 2024, Musk posted on X, formerly Twitter, "Reuters is lying (again)," after the publication reported Tesla's affordable EV, nicknamed the Model 2, as canceled. Reuters's Model 2 report triggered Tesla stock declines, but those losses didn't extend beyond 6% after Musk's denial on X. Musk reversed course months later during Tesla's Q3 earnings call in October, saying: "Basically, having a regular $25K model is pointless. It would be silly. It would be completely at odds with what we believe," according to Road & Track. The new Reuters report claims executives not only knew that Tesla was pivoting from the Model 2 weeks before Musk denied the project's cancellation, but also expected the robotaxi to take its place. Some confused executives asked Musk whether he had changed his mind about ending the Model 2 initiative, to which the Tesla CEO is said to have replied that the project was still over. Other Tesla executives grew concerned about how investors and suppliers would react given their expectation of a new, more affordable vehicle, and feared the denial would hurt Tesla's sales since some were delaying purchases in hopes of a $25,000 EV. The Securities and Exchange Commission (SEC) might even view the statement as misleading investors about a future project that was part of the company's forecasts. Musk already settled with the SEC in 2018 for $40 million over a social media post, which the SEC claimed misled investors into thinking the billionaire would take Tesla private. Still, Musk's public denial didn't bother all Tesla executives, as some cited the automaker as considering various strategies for low-cost EVs over the years. Autoblog reached out to Tesla for comment but didn't receive a response. Earlier this year, Tesla confirmed its updated approach of using pre-existing model platforms to accelerate the release of new vehicles, including affordable cars, one of which was supposed to be a cheaper version of the Model Y, nicknamed E41, and the other being a stripped-down Model 3. However, the stripped-down Model Y will cost more than the originally planned $25,000 price tag, and Reuters's three sources state its US launch is being delayed with an updated release target of late 2025 or early 2026. Reliable reports haven't yet emerged about a stripped-down Model 3's production timeline and pricing. Late last week, a video was posted of a white Tesla SUV driving around the automaker's Fremont, California factory track with its front and rear covered, possibly indicating E41 trials. Tesla Newswire reposted the footage on X. Referenced in some of our previous articles on Tesla, Autoblog interviewed viral YouTuber and mechanic Scotty Kilmer, who seemed to sum up Musk's decision to publicly deny the Model 2's cancellation by saying: "Value to him [Elon Musk] is stock market value. Stock market value isn't real value. It's pumped-up stuff. It used to be that the stock market was an investment. It isn't anymore. It's just outright riverboat gambling. His [Elon Musk] stock can go up billions of dollars or go down billions of dollars with whatever he says." Since Musk's denial of the Model 2's end stopped a stock slide, it seems the Tesla CEO's public statement prioritized damage control instead of buyer and investor transparency. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Kuwait Times
3 days ago
- Automotive
- Kuwait Times
Tesla executives question Musk after he denied killing $25,000 EV project
Tesla now plans more affordable, stripped-down versions of Model 3 and Model Y NEW YORK: Some senior Tesla executives were alarmed last year when Elon Musk denied a Reuters report that the company had killed a planned all-new $25,000 EV that investors had expected to drive explosive vehicle sales growth, according to people familiar with the matter. 'Reuters is lying,' Musk had posted on X, minutes after the story published on April 5, 2024, halting a 6 percent decline in Tesla's stock. Tesla shares recovered some of the loss after Musk's post, but the stock was down 3.6 percent at market close. The executives knew that Musk had, in fact, canceled the low-cost vehicle, which many investors called the Model 2, and pivoted Tesla to focus on self-driving robotaxis, the people said. The company had told employees the project was over weeks earlier, Reuters reported, citing three sources and company documents. Musk's post was so confusing to some senior managers that they asked him whether he'd changed his mind. Musk rejected their concerns and said the project was still dead, according to the people with knowledge of the matter. The executives' concerns, which haven't been previously reported, shed light on the company's struggle to deliver a low-cost, mass-market EV, considered a core promise of the company. Some other Tesla executives were unconcerned about Musk's X post, said people familiar with the matter. The automaker keeps its product plans flexible, one person said, to respond to market conditions. A year later, struggling with a dated lineup and falling sales around the world, Tesla has still not released the low-cost EV that Musk once called pivotal to the company's future. Neither Musk nor Tesla has explicitly confirmed killing an all-new model that investors and Tesla enthusiasts have long referred to as the Model 2 because it would slot in below the current cheapest model in Tesla's lineup, the $42,500 Model 3. On Wednesday, Musk announced that he is leaving his role as a special advisor to US President Donald Trump to return his focus to his companies, including Tesla, SpaceX, xAI, Neuralink, and the social media company X. Tesla and Musk did not respond to requests for comment. Weeks after Musk's post on X, Tesla published an investor update that assured Tesla still planned 'new vehicles, including more affordable models' that will be built on current manufacturing lines. Musk and Tesla had said previously that the planned $25,000 EV would be an all-new model, designed and built from scratch on a new platform. Musk had touted the project as a testbed for groundbreaking manufacturing innovations that would lower the cost of electric vehicles. But instead of an all-new model, Tesla is working on stripped-down versions of the Model 3 sedan and Model Y compact SUV, Reuters reported in April. No pricing on those models has been announced and the cars, set to roll out in the first half of 2025, have been delayed. On Tesla's earnings call in April, engineering chief Lars Moravy said that the affordable models would 'resemble in form and shape the cars we already make.' 'The key is they'll be affordable,' he added, 'and you'll be able to buy one.' After Musk denied the Reuters report about killing the Model 2, executives questioned Musk about what the company should tell perplexed suppliers and investors, people familiar with the matter said. Some executives told associates the denial made no sense—investors and the public would inevitably learn the truth—and worried it would hurt Tesla sales as buyers delayed purchases to wait for a $25,000 Tesla that, in reality, it had decided not to build. Their concerns were not universally shared at the company. One of the sources familiar with the internal deliberations about Musk's public denial told Reuters that Tesla has considered a variety of strategies for producing low-cost EVs over the years. Gary Black, a Tesla investor who manages money for the Future Fund LLC, said he didn't view Musk's statement as a 'denial' at the time, noting that Musk often makes 'brief and abrupt' comments that 'can be about anything.' That said, Black told Reuters he recently sold his fund's $1.2 million position in Tesla in part out of concern the affordable new vehicle will be a 'stripped down Model Y' rather than a 'differentiated product.' Worries about SEC Some Tesla executives told associates they were worried that denying the Model 2 was dead could land Musk in hot water with the Securities and Exchange Commission for misleading investors about a future product line that had been baked into their forecasts for the company. Musk had previously paid a $40 million settlement in 2018 over another social media post that the agency alleged misled investors that Musk planned to take Tesla private. Reuters could not determine whether executives approached Musk directly with the SEC enforcement concern, nor if they alerted the SEC itself. An SEC spokesperson declined to comment. Musk's agreement with the SEC requires him to have his social media posts about certain aspects of Tesla, such as new business lines and forecasts about the company, first vetted by a lawyer. Musk despises the settlement, according to people familiar with his thinking, and has told associates he doesn't post anything that needs attorney approval. The same day Musk denied the Reuters report, he lifted Tesla's stock again in after-hours trading with a post saying 'Robotaxi unveil 8/8,' for August 8, a plan he had not widely announced to Tesla employees, said people familiar with the matter. The Hollywood-style debut of a two-door 'Cybercab' ended up being delayed until October and underwhelmed investors. Many investors long ago gave up hope for a transformational $25,000 EV that would juice sales. Instead, Tesla posted its first annual vehicle sales decline in 2024 and sales were down 13 percent in the first quarter of 2025 amid rising competition and public protests against Musk's work in the Trump administration. In April, Chinese automaker BYD outsold Tesla in Europe for the first time and is taking the global lead in affordable EVs. BYD's entry-level Seagull electric hatchback costs less than $10,000 in China and sells competitively for more than double that price in export markets. - Reuters
Miami Herald
3 days ago
- Business
- Miami Herald
Tesla execs question Elon Musk over controversial X post
Tesla CEO Elon Musk loved Twitter long before he purchased it. Musk has been a frequent poster on the social media network for years, often sharing his thoughts on everything from the mundane to the profane. He's also gotten himself and Tesla into trouble on the social media platform in the past. Related: Elon Musk fulfills a promise he recently made to Tesla investors Back on August 7, 2018, Musk tweeted, "Am considering taking Tesla private at $420. Funding secured." This tweet led to a class action lawsuit filed by Tesla shareholders, who claimed it was misleading. They claimed it caused them to lose money after stock prices rose nearly 23% in the subsequent days to meet the $420 level, only to decline again once it became clear Musk was not serious about taking the company private. The plaintiffs argued that no one, not even one of the world's wealthiest people, should be above the law, and knowingly misleading shareholders to believe you are taking a company private when you are not is illegal. Musk's defense, meanwhile, argued that while the "funding secured" tweet was only "technically inaccurate" and that "the whole case is built on bad word choice. Who cares about bad word choice?" A San Francisco jury eventually ruled that Musk and Tesla were not liable for misleading investors, letting Musk off the hook after just two hours of deliberation. Six years later, Musk once again found himself in hot water over a tweet, but this time the pressure was coming from inside his company. Image source: NurPhoto/Getty Images Last year, Reuters began reporting on Tesla's plan to discontinue plans for a $25,000 EV that would be the most affordable the company has ever built. When it was first announced, analysts and investors expected the vehicle to be a smashing success like the Model 3, Tesla's current budget option. But, according to three sources who talked to Reuters, Tesla held a meeting attended by scores of employees and told them of the decision not to pursue the model. Elon Musk's reaction to the piece was immediate. "Reuters is lying," Musk said on X after the story was published on April 5. Musk's tweet stopped a 6% slide that day, as the budget model, known as Model 2, had been the linchpin of the company's growth plans. Related: Elon Musk explains DOGE mission, takes shot at government But according to new Reuters reporting, Tesla executives were confused and alarmed by the tweet because the company had, in fact, decided to abandon the Model 2. They felt Musk's tweet could potentially make them financially liable, like his tweet in 2018 almost did. Some senior managers were so confused by the tweet that they asked Musk whether he had changed his mind about the car. Musk assured them that the project was still off. The company had previously said that the Model 2 would be an all-new model, built and designed from scratch, that would revamp Tesla's entire image. Instead, the company plans to offer slimmed-down versions of its popular Model 3 sedan and Model Y SUV. No prices have been set for those models, and their expected rollout in the first half of 2025 has been delayed. One Tesla executive said that some other Tesla execs weren't as concerned about the tweet because the company's product plans remain flexible. However, one of the biggest concerns some execs had was about the Securities and Exchange Commission. While Musk was able to win the jury trial back in 2018, he could not escape the SEC. Musk settled claims over the funding secured tweet, with the agency alleging that Musk misled investors by saying he was planning to take Tesla private. As part of the settlement, Musk agreed to step down as chairman of Tesla, pay a $20 million fine (with Tesla also paying another $20 million), and add two new independent directors to his board. Musk also agreed to have his social media posts about Tesla be vetted by a lawyer. Reuters reported that some of the executives questioning Musk told associates that they feared Musk's tweet could have violated his settlement with the SEC because he was misleading investors about a future product they had already agreed to scrap. The SEC did not immediately return a request for comment. Related: Elon Musk says he is 'paranoid' about this issue; he's right to be The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Time of India
4 days ago
- Automotive
- Time of India
Internal combustion at Tesla over low-cost EV
Some senior Tesla executives were alarmed last year when Elon Musk denied a Reuters report that the company had killed a planned all-new $25,000 EV that investors had expected to drive explosive vehicle sales growth, according to people familiar with the matter. "Reuters is lying," Musk posted on X, minutes after the story published on April 5, 2024, halting a 6per cent fall in Tesla's stock. The executives knew that Musk had, in fact, canceled the low-cost vehicle, which many investors called the Model 2, and pivoted Tesla to focus on self-driving robotaxis , the people said. The company had told employees the project was over weeks earlier, Reuters reported, citing three sources and company documents. Musk's post was so confusing to some senior managers that they asked him whether he'd changed his mind. Musk rejected their concerns and said the project was still dead, according to people with knowledge of the matter. The executives' concerns, which haven't been previously reported, shed light on the company's struggle to deliver a low-cost, mass-market EV, considered a core promise of the company. Some other Tesla executives were unconcerned about Musk's X post, said people familiar with the matter. The automaker keeps its product plans flexible, one person said, to respond to market conditions. A year later, struggling with a dated lineup and falling sales around the world, Tesla has still not released the low-cost EV that Musk once called pivotal to the company's future. Neither Musk nor Tesla has explicitly confirmed killing an all-new model that investors and Tesla enthusiasts have long referred to as the Model 2 because it would slot in below the current cheapest model in Tesla's lineup, the $42,500 Model 3.
