When Reuters reported in April that Tesla had scrapped plans for a long-promised, next-generation $25,000 electric vehicle, the automaker’s stock plunged. Chief Executive Elon Musk rushed to respond on X, his social-media network.
“Reuters is lying,” he posted, without elaborating. Tesla’s stock recovered some of its losses.
Six months later, Musk appears to have backed into an admission that Tesla dropped its plans for a human-driven $25,000 car. He said in an Oct. 23 earnings call that building the affordable EV would be "pointless” unless the car was fully autonomous.
The same profit margins and CAFE standards that companies like Toyota, Hyundai, and Honda have to abide by too? This makes no sense as these companies were outselling domestic maker’s cars 5 to 1 in the exact same financial and regulatory environment.