Tesla will reveal more information about its long-promised robotaxi on August 8, according to CEO Elon Musk. The annoucement came on the same dayReuters published a reportclaiming Tesla had canceled development onProject Redwood, an effort by the automaker to build an affordable $25,000 electric vehicle. Hours afteraccusing the wire service of “lying (again),“Musk took to X at 4:49pm ET to share the news. “Tesla robotaxi unveil on 8/8,“he said.
Tesla’s $25,000 Model 2 crossover: What we know
Despite recent reports, Elon Musk insists that Project Redwood, Tesla’s effort to build its most affordable EV yet, is still on track.
Musk did not state what part of the report was inaccurate, but Reuters, citing three sources “familiar with the matter,” in addition to a message seen by its reporters, said Tesla had decided to abandon work on a low-cost EV in favor of a more forward-looking robotaxi, and that the project would use the same small-vehicle platform Tesla had been working for its Redwood crossover.
As recently as January, Musk told investors Tesla could deliver a more affordable electric car, dubbed the Model 2 by the company’s fans, as early as the second half of 2025. However, in a meeting Tesla leadership reportedly held in late February, executives shared news of the cancellation with employees. “Elon’s directive is to go all in on robotaxi,” one source told Reuters.
“The Master Plan”
Back when Musk first confirmed plans for a mass-market EV, it was thought the $25,000 EV would, based on the assumption that Tesla could eventually figure out how to make a fully self-driving car a reality, eventually serve as the base for the company’s robotaxi platform. AsThe Verge points out, Musk has long hinted that creating a fleet of robotaxi is part of his long-term vision for Tesla.
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“You will also be able to add your car to the Tesla shared fleet just by tapping a button on the Tesla phone app and have it generate income for you while you’re at work or on vacation, significantly offsetting and at times potentially exceeding the monthly loan or lease cost,” Musk wrote back in 2016 in a blog post titled the “Master Plan, Part Deux.”
In fact, it seemed Tesla was closer than ever to realizing that vision last year when it showed off a completely covered vehicle during an event dedicated to Musk’s third Master Plan for Tesla. At the same, it’s worth noting the billionaire has repeatedly exaggerated claims about the maturity of Tesla’s self-driving software, and it’s currently the subject ofNational Highway Traffic Safety Administration investigation.
