Tesla’s long-promised $25,000 electric car could have been a “slimmed down Model Y” if not only for the conceptual robotaxi concept presentation that snatched CEO Elon Musk’s interest.
First executive-level meeting
According to The Information, Tesla Chief Executive Elon Musk’s reckless decision not only delayed the “slimmed-down” $25,000 Tesla Model Y development.
The report, further backed by accounts from ex-Tesla employees, disclosed that the debacle arose in two recent executive-level meetings during a week in February 2024.
The first meeting saw CEO Elon Musk’s lieutenants propose the $25,000 EV “Model 2” codenamed “NV91” as Tesla’s new best seller.
The lieutenants reportedly plan to build the NV91 by slimming down the world’s top-selling vehicle, the Tesla Model Y, and sell it at CEO Musk’s long-promised price point.
“In the first, Musk’s lieutenants showed him the latest full-size version of a budget-priced
crossover SUV, a car that resembled a slimmed-down Model Y. The vehicle—which people outside Tesla had dubbed the Model 2—was on track for mass production in the second half of 2025 and would be priced at roughly $25,000.”
In hindsight, CEO Musk strategized an innovative manufacturing process to deliver its planned mass-market EV. He planned to utilize the company’s efficient production approach with cheaper battery tech to reduce costs. However, the price was not actually the main factor that snatched CEO Musk’s attention away from the $25,000 EV. It was apparently the robotaxi, which the Tesla boss called the “CyberCab.”
Follow-up meeting
As per the report, the second meeting revolved around a self-driving robotaxi concept under the codename NV93.
In a major turn of events, the pitch reportedly affected the Tesla boss’ initial plans. The product pitch only apparently aims to pacify CEO Musk’s appetite for future offerings. However, he wanted to determine the reason why the electric automaker was not yet pursuing the idea, considering his long ambition to launch a fully autonomous EV since 2016.
In this sense, CEO Musk reportedly canceled the affordable EV development. He immediately denied the report. Tesla is only apparently planning to focus on the robotaxi first before the $25,000 EV.
Tesla CEO Musk then announced the official debut of the robotaxi on August 8, 2024. He has also recently traveled to Shanghai to propose launching robotaxi testing in China.
“He turns the barge like it’s a speedboat.”
An unnamed former middle-ranking Tesla executive said in an exclusive interview
NV91 vs. NV93
While the affordable EV NV91 and the robotaxi NV93 have similarities, including the traction battery and drive motor, they have different target customers.
For instance, the $25,000 electric vehicle will provide Tesla with a substantial one-time payment. It will appeal to people who appreciate driving in their daily lives.
Meanwhile, the robotaxi is apparently an “operating expense” to reach the lowest cost per mile. It must be durable to tolerate potential abuse from passengers on short-term commutes, given the absence of a driver behind the wheel.
However, several ex-Tesla employees revealed that the CyberCab is “a long way from ready to release.” Therefore, the company may delay its release. Consequently, it may push investors’ patience amid Tesla’s declining stock of more than 32% in 2024 alone.
