Elon Musk confirms that a $25,000 Tesla Model 2 is not on the way

Tesla CEO Elon Musk confirmed that the electric vehicle maker has no plans to launch a $25,000 model, echoing comments he made six months ago when he denied a news report that said just that.

The billionaire entrepreneur and top donor to Donald Trump’s presidential campaign commented on the status of the so-called Model 2 EV on Wednesday after the Austin-based company reported stronger-than-expected third-quarter earnings. He was asked specifically about the status of the low-cost, non-robotaxi car while answering questions from private Tesla investors during an earnings call.

“We are not making a non-robotaxi model,” he said. “I think we have made it very clear that the future is autonomous.”

Earlier this month, Musk unveiled his vision for Tesla’s future with its Cybercab robotaxi model at a show for the brand’s fans at Warner Brothers Studios in Burbank, California, claiming that the two-seat autonomous electric vehicle would cost around $ 30,000 would be sold if commissioned. production in 2026. Whether such a product will actually arrive on time and at the promised price remains to be seen. Overall, the company’s goal is to lower the price of all its products, and Musk said it is on track to sell vehicles costing less than $30,000, once government subsidies are factored in.

In April, Reuters reported that Tesla had canceled the Model 2 program, a vehicle that might be produced at a new factory the company hoped to build in Mexico. Musk denied the Reuters report at the time, writing on X, the social media platform he owns, that the news agency was “lying.” Nevertheless, he provided no details over the past six months about whether such a vehicle was in the works. The company also shelved plans to build the Mexican factory.

Musk has repeatedly pegged Tesla’s future to autonomous driving and humanoid robots, rather than simply selling electric vehicles and batteries. Still, in the quarter ended September 30, 89% of Tesla’s $25.2 billion in revenue came from vehicle and battery sales. The company’s financial statements do not itemize revenue specifically related to AI services.

Tesla shares rose 12% in after-hours trading following the company’s quarterly earnings release. It reported adjusted earnings per share of 72 cents on net income of $2.51 billion. That was the top consensus analyst call for earnings per share of 59 cents and net income of $2.01 billion, according to FactSet.

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