4 days ago
Tesla executives questioned Musk after he denied killing $25,000 EV project
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 (R447,545) electric vehicle (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% decline in Tesla's stock. Tesla shares recovered some of the loss after Musk's post, but the stock was down 3.6% at market close.
The executives knew that Musk had, in fact, cancelled 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 carmaker keeps its product plans flexible, one person said, to respond to market conditions.
