Tesla's Pivot: From Affordable EVs to Autonomous Futures

Elon Musk confirmed that Tesla scrapped its plan for a $25,000 human-driven car, focusing instead on autonomous vehicles like the 'Cybercab.' Despite past promises of affordable EVs, Tesla now highlights self-driving tech. Musk unveiled this shift amidst regulatory and technological challenges for full autonomy.

Reports in April indicated Tesla had abandoned plans for an affordable $25,000 vehicle, causing a brief stock decline. Elon Musk, Tesla's CEO, disputed these reports but later suggested the shift in strategy was correct, prioritizing fully autonomous vehicles over lower-cost human-driven cars.

During an October earnings call, Musk revealed plans for the 'Cybercab,' a fully autonomous EV aimed to launch by 2026, following deployment in Texas and California. This marks a strategic pivot from Tesla's previous goal of producing a mass-market affordable car to focusing on advanced autonomous technology.

The move aligns with Tesla's revised strategy to prioritize robotaxis and self-driving technology over a mass-market 'Model 2.' Critics have highlighted potential regulatory hurdles and market uncertainties, but Tesla remains committed to redefining transportation with autonomous solutions.

(With inputs from agencies.)