Tesla Scraps Plans for Affordable Electric Vehicle Development: Here’s the Reason

American EV giant Tesla has been working on a low-cost family EV for quite some time. Now, it seems that the company is no longer interested in making an entry-level EV as it has taken a step back from the production plan. Elon Musk, who owns Tesla, is making even more efforts and is giving primary attention to the robotaxi project, Reuters reported.

Entry-level Tesla plan
The company intends to launch new entry-level battery-powered models to cater to the mass market in the segment. The EV was expected to hit the market in the first quarter of next year with an expected price of around $25,000. It was expected to be positioned below the Model 3, making it affordable for more people. Now, it seems that the plan has been given a shift, and is unlikely to turn into reality.

Robotaxis for unveiling
Meanwhile, Tesla is preparing to introduce Robotaxis globally on August 8. Musk has already confirmed the news on his official X handle. He wrote, “Tesla to unveil Robotaxis on 8/8”. He didn’t add much relevant details in his post, leaving everyone excited about the future self-driving vehicle launch.

A game changer for Tesla?
If all goes as planned, Robotaxis will be a game changer for Tesla. It is expected to completely transform the entire mobility industry. Robotasi is expected to come without steering and will offer a fully autonomous taxi service.