Low-cost Tesla EV was production-ready before Robotaxi announcement: Report 

Tesla has long been teasing the launch of a low-cost electric vehicle (EV) but the company has supervised this unveiling with the Robotaxi announcement and a new report suggests that the rumored $25,000 EV was production-ready well before it was shelved.

The Information reports that Tesla’s secret Model 2 was ready for pilot production later this year and high-volume manufacturing in 2025 citing a former Tesla employee related to this project. The report mentions that the plan for this new model was scrapped when the company brought Robotaxi and started its development instead.

Last month, Tesla CEO, Elon Musk officially announced that his company will unveil an autonomous Robotaxi product on August 8. However, there were no details revealed about this product.

The announcement comes amid a report on the same topic, which claims the EV maker has no intention to follow a brand-new low-cost platform. Soon after, Musk denied this report without saying anything about the low-cost vehicle.

During the first quarter earnings report, the Tesla chief revealed a shift in the upcoming lineup. He said the company is preparing to launch new models by the end of this or the next year.

He explained that the lineup will expand to new vehicles with increased affordability. These cars will use technologies from existing and next-generation platforms for the highest efficiency. Furthermore, the new models will be manufactured at existing lines with minimum optimizations without extra investment.

The change in plan reflects more on the cost-saving, which has become a key aspect for EV makers in the face of slow EV demand. The company is forecasting slow business this year with increased sales compared to 2023.

The world’s largest EV maker’s new launch strategy may have been influenced by full self-driving (FSD), which has become more robust with version 12. Therefore, the company wants to tap the Robotaxi market first while preparing for better affordable models later.

Only Tesla could confirm whether it has shelved the production-ready low-cost model as it prepares to unveil a Robotaxi in the next quarter.