Jobaaj Stories
Just when fans thought Tesla’s long-promised $25K EV was finally on the horizon, Reuters reports the affordable electric car has hit the brakes — again. Instead, Elon Musk seems more focused on robotaxis than the everyday driver. So, what’s really going on?
🚗 Tesla's Affordable EV: Another Delay
Originally slated for production in early 2025, Tesla's lower-cost Model Y variant, internally codenamed E41, is now expected to enter production between Q3 2025 and early 2026. This stripped-down version aims to reduce production costs by 20% compared to the current Model Y, with plans to manufacture 250,000 units annually in the U.S
🤖 Shift Towards Robotaxis
Elon Musk has previously emphasized a $25,000 EV platform but has since shifted focus towards developing autonomous robotaxis. This pivot has led to the shelving of the affordable EV project, leaving consumers and investors awaiting a more budget-friendly Tesla option.
📉 Market Impact and Investor Concerns
The delay has had immediate financial repercussions, with Tesla's stock dropping 6% to $227.50, extending its year-to-date decline to 44%. Investors are concerned about the company's ability to maintain its market share amid increasing competition from Chinese EV manufacturers and the absence of a lower-cost model to attract a broader customer base.
Global Production Plans
Despite the U.S. delay, Tesla plans to eventually produce the affordable Model Y variant in China and Europe to cater to local markets. However, the timeline for these international production plans remains uncertain.
