Tesla hits brake on affordable EV production, instead opt to focus on previously-announced models

On 26 January, Tesla officially announced that it is pausing the development of its most affordable EV. Instead, the automaker opts to prioritize its flagship vehicles, which have already been delayed to 2023.  

Plans to build affordable Tesla electric cars, priced at $US25,000, nearly half of the Model 3 sedan, were announced in late 2020 by CEO Elon Musk. However, he recently confirmed the brand opts to put its cheapest electric car on hold.

"We're not currently working on the $US25,000 car. At some point, we will, but we have enough on our plate right now – too much on our plate, frankly," Musk said during Tesla's 2021 financial results presentation.

He added that the company "hopes" these models will go on sale in 2023. Besides, introducing new cars in 2022 "would not make sense", as the semiconductor shortage persists in impacting Tesla production. 

It is stated that with hope held high, Tesla, for now, would be focusing on developing the three previously-announced vehicle models, the Roadster sports car, Cybertruck ute, and semi-heavy vehicle. Yet, the netizens need to wait for a year to enjoy mass production. 

The electric car expert will likewise continue with its idea of developing Optimus, the Tesla Bot, as shown in its announcement last year. 

Musk said, "we will be [doing> a lot of engineering and tooling to create those vehicles – Cybertruck, Semi, Roadster, Optimus [the Tesla robot> – and be ready to bring those to production, hopefully, next year."

However, when the question was asked relating to the progress of the Cybertruck, Musk said: "There's a lot of new technology in the Cybertruck that will take some time to work through. There's a question of what's the average cost of a Cybertruck and to what degree is that affordable."

Lately, Tesla broke a sales record in 2021 after announcing its whopping 936,172 new car deliveries. However, there are some doubts whether or not the company would make up the numbers this year as semiconductor shortage – amid other parts, constraints exist. 

Also read: RNM alliance will invest 23 billion euros into EVs over next five years