Tesla is said to be in the works to develop a more affordable electric car priced at $25,000. This vehicle would be built using Tesla’s next-generation engineering platform. In addition to the electric car, there are plans for an autonomous robotaxi that could transport passengers.
Walter Isaacson, who is known for his biographies on Elon Musk, has reportedly shared details about Tesla’s strategy to produce this budget-friendly electric car in conjunction with the autonomous robotaxi service. This move aligns with Tesla’s goal of making electric vehicles more accessible to a wider range of consumers while exploring the potential of self-driving technology for ride-sharing services.
The $25,000 electric car from Tesla is rumored to have a futuristic design reminiscent of the Cybertruck. The Cybertruck, originally unveiled in 2019, features an angular and unconventional design. It’s expected that the production of the Cybertruck will commence this year, with full-scale production set to start in 2024. This suggests that both the budget-friendly electric car and the Cybertruck may share certain design elements that align with Tesla’s futuristic and distinctive aesthetic.
Indeed, Tesla has made previous promises about launching a $25,000 electric car. Elon Musk initially mentioned this goal in 2018, suggesting that it could be achieved within three years. The idea of a more affordable electric vehicle was reiterated in 2020. Additionally, the Model 3 was originally intended to be priced at $35,000, but Tesla later shifted its strategy to focus on higher-priced variants shortly after its initial release at that price point. These past commitments have raised expectations for a lower-priced Tesla model, and the recent reports suggest that the company is still working toward this goal.
Elon Musk had previously expressed a preference for focusing on the development of truly autonomous robotaxis instead of the initial $25,000 electric car plan. These robotaxis are designed to operate without the need for human drivers and would essentially be self-driving vehicles with no mirrors, pedals, or steering wheel. Musk has touted the potential of robotaxis to revolutionize transportation and reduce the need for personal car ownership. He believes that the success of robotaxis could make Tesla an immensely valuable company, possibly reaching a market capitalization of ten trillion dollars. According to Musk, this development could be a historically significant moment with long-lasting implications.
Tesla’s engineers had reservations about the robotaxi project, particularly concerning whether to design a robotaxi with a removable steering wheel. They were concerned that Tesla’s Full Self-Driving (FSD) technology might not be fully ready or that regulatory approval for a car without a traditional steering wheel could be problematic. However, they continued working on the $25,000 electric vehicle project as a separate initiative. Eventually, they convinced Elon Musk that Tesla could develop two versions of the vehicle: one sold for $25,000 with a traditional steering wheel and another designed as a robotaxi, both based on the company’s “next-generation” engineering platform. This approach allowed Tesla to cater to different market segments and regulatory requirements.
Elon Musk became actively involved in the project earlier this year after reviewing the designs created by Tesla engineers. These designs included both the robotaxi and the $25,000 electric vehicle, and both were characterized by a futuristic design aesthetic similar to the Cybertruck. Musk was impressed with the overall design, which he described as having a “Cybertruck futuristic feel.” He expressed confidence that when these vehicles are seen on the road, people will perceive them as something from the future. This involvement and enthusiasm from Musk helped solidify the company’s commitment to pursuing both the robotaxi and the more affordable electric vehicle on their “next-generation” engineering platform.
Yes, design drawings for a compact electric car were briefly shown in a Tesla corporate video earlier this year. This sparked speculation that these design drawings might be a part of Tesla’s plans for the $25,000 electric car, adding to the anticipation and interest surrounding this more affordable Tesla vehicle.
The excerpt from Walter Isaacson’s upcoming biography of Elon Musk doesn’t provide a specific launch date for the $25,000 EV. As is often the case with Tesla, release dates for new products can be somewhat uncertain, and the company tends to work on its own timelines. Tesla’s top engineers are currently working in Austin, Texas, with a high-speed automated assembly line in an effort to manufacture these next-generation cars and robotaxis at volume. This manufacturing push is aimed at reducing battery costs and realizing the goal of offering a $25,000 mass-market Tesla, but an exact release date remains unspecified.
