Exclusive: Tesla executives interviewed musk after he denied killing a $ 25,000 EV project

Author Rachael Levy

(Reuters) -Some senior Tesla (TSLA) executives were worried last year when Elon Musk denied Reuters that the company had killed the planned brand new $ 25,000 EV, which investors expected to increase explosive vehicles,

“Reuters are lying,” Musk announced X, a few minutes after the story was announced on April 5, 2024, stopping 6% Tesla’s downturn. Tesla shares have recovered some losses after Musk’s post, but Market Close shares decreased by 3.6%.

The leaders knew that Musk had actually canceled the cheap vehicles that many investors called the 2 model and turned Tesla to focus on the independent robotaxe, people said. The company told employees that the project had been more than a few weeks, Reuters said, quoting three sources and company documents.

Musk’s post was so confusing to some older leaders that they asked him if he changed their mind. According to people with knowledge of the matter, Musk rejected their concerns and said the project was still dead.

The concerns of executives that have not been reported before have been revealed in the company’s struggle for cheap, mass market EV, considered the main promise of the company.

Some other Tesla executives were worried about Musk X’s record, people said they were familiar with the matter. The car manufacturer retains its products’ plans flexible, according to one person, responded to market conditions.

A year later, Tesla still has not released cheap EVs, once called the Pivotal, the future of Pivotal, while fighting outdated composition and declining sales. Neither Musk nor Tesla clearly confirmed that they had killed a whole new model that investors and Tesla enthusiasts have long called Model 2 because it would be below the current cheapest Tesla series, 42,500 USD 3.

On Wednesday, Musk announced that he leaves his role as US President Donald Trump’s adviser to return attention to his companies, including Tesla, SpaceX, Xai, Neuralink and Social Media Company X.

Tesla and Musk did not respond to the requests to comment.

A few weeks after Musk’s report on X, Tesla announced an upgrade to investors, which ensured Tesla was still planning “new vehicles, including more accessible models” that would be based on current production lines.

Musk and Tesla have previously said that the $ 25,000 EV would be a whole new model designed and built from scratch on a new platform. Musk marked the project as a pilot for innovative production innovations that would reduce the cost of electric vehicles.

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