Tesla's $25K Dream: Why Musk Says It's 'Pointless' Without Autonomy

Tesla has scrapped plans for a $25,000 human-driven car, says CEO Elon Musk. Instead, the company focuses on a fully autonomous 'Cybercab.' Despite initial denials, Musk admits the shift, emphasizing that without full autonomy, a budget-friendly model would be 'pointless.' Tesla faces technological and regulatory challenges in implementing autonomy.

In a dramatic shift, Tesla CEO Elon Musk has confirmed the abandonment of a $25,000 electric vehicle aimed at human drivers, arguing that a non-autonomous car at such a price point would be 'pointless.' Initially projected as a cornerstone for expansion, the affordable model has been shelved for a fully autonomous vehicle, dubbed the 'Cybercab.'

After previously denying reports about scrapping the car, Musk clarified during an earnings call on October 23 that Tesla’s current focus is on developing fully autonomous vehicles. Tesla unveiled a prototype of the Cybercab, a compact two-door, two-seat vehicle designed for autonomy, aiming for 2026 production.

The decision reflects the company's commitment to self-driving technology despite facing significant technological and regulatory impediments. Tesla’s departure from its earlier strategy underlines the challenges of keeping pace with global competitors and evolving market expectations.

(With inputs from agencies.)