- Elon Musk revealed details of a cheaper Tesla model a few months ago.
- Bloomberg reported that Tesla has moved to robotaxis, which Musk said will be revealed in August.
- The shift in focus comes as Tesla reports slowing sales and falling revenue.
If electric vehicle consumers were looking for a cheaper Tesla in the immediate future, that hope may have to be put aside for now.
Bloomberg reported that the company’s priorities have shifted from a $25,000 consumer Tesla to robotaxis, which Elon Musk says will be unveiled in August.
The pivot comes after Tesla’s disappointing earnings report, which revealed a 20% drop in vehicle deliveries for the first quarter. Bloomberg reported that the company is also expected to report a 40% drop in operating profit and its first revenue decline in four years on Tuesday.
In response, Musk is cutting his company’s workforce by 10% and betting on robo-taxis to give Tesla a much-needed boost.
Musk announced on X in early April that Tesla plans to unveil its first robotaxi in August, which will likely require significant advances in the automaker’s FSD software.
Currently, Tesla’s so-called fully autonomous driving technology can allow a vehicle to automatically change lanes, automatically park and enter a highway, among other features. However, this still requires full-time driver supervision. The automaker also faces several lawsuits related to the software.
Tesla hasn’t revealed many official details about what the robotaxi will look like. Still, Musk has made various statements about his vision for the company’s autonomous cabin, including removing human-oriented controls such as mirrors, pedals and steering wheels. He also said Tesla owners could turn their vehicles into robo-taxi, earning them up to $30,000 a year.
But Tesla’s CEO has already made big promises about robotaxis. In 2019, Musk said the company would have a million self-driving taxis on the roads by next year, a claim that was met with much skepticism and never came to fruition. The company has not deployed any self-driving taxis and has not received government approval to test such vehicles on public roads.
Sources close to the company’s plans told Bloomberg that it’s all hands on deck for robotaxis.
A source told the outlet that the robotaxis’ prototype deployment timeline and production capacity took priority over a cheaper Tesla model.
The pivot is a marked change in direction for Musk and the company.
In December, Musk gave details about a $25,000 Tesla, saying the company was “pretty far along” in its work on the car and would be “unlike any automotive production line that anyone who has ever seen.”
For now, the cheaper Tesla appears to have been put on the back burner. Reuters reported in early April that sources familiar with the company’s plans said the $25,000 model was dead. Musk has denied this information, and sources have even disputed this assertion to Bloomberg.
Either way, analysts said Musk’s bet on robo-taxis is risky and the Tesla leader should focus on delivering a cheaper electric car – strong demand among US drivers who are looking to make the transition.
Wedbush analysts even wrote that it was “crucial” for Tesla to deliver a cheaper model within the next 18 months.
A Tesla spokesperson did not respond to a request for comment.
businessinsider
