Tesla CEO Elon Musk confirmed on Wednesday that the electric carmaker isn’t currently working $25,000 EV and suggests that the availability of such a vehicle is less important when the car becomes self-driving.
Musk claims that transportation costs actually decrease by 4 or 5 when autonomous vehicles are activated: “It is clear from these questions that the gravity of driving is completely underappreciated. If the asset is worth five times in use, it’s like dividing the asset with that cost by five”. The argument is that a self-driving car can be used to drive when its owner doesn’t need it, putting it into service five times as often.
Tesla has long had plans to offer more affordable vehicles. While that idea had previously taken shape in a $35,000 Tesla Model 3 version that had only been around for a short time, Musk explained at the company’s September 2020 Battery Day that it intends to deliver a $25,000 “attractive” car with fully autonomous driving for three years.
$25,000 Tesla Introduced for 2023 – Battery Day
Subsequent reports, citing Tesla’s head of China operations, Tom Zhu, confirmed in early 2021 that global EVs are affordable globally. will be developed in Chinaat a new R&D center in Shanghai.
Nearly half of that development timeframe since the $25,000 model was announced, Musk clarified that the company is still not working on it, although it will.
In 2019, Musk revealed his plans to transform the company into self-driving “robot taxi” operator capable of operating on the Tesla Network to earn money when the owner does not need it. At the time, he promised to “complete the functionality” of full self-driving by the end of 2019 and self-driving cars to be operational in some locations by 2020.
![Consumer Reports Navigating Tesla Model 3 on Autopilot prepares to pass left [CREDIT: CR]](https://images.hgmsites.net/lrg/consumer-reports-tesla-model-3-navigate-on-autopilot-prepares-to-pass-on-left-credit-cr_100702130_l.jpg "Consumer Reports Navigating Tesla Model 3 on Autopilot prepares to pass left [CREDIT: CR]")
Consumer Reports Navigating Tesla Model 3 on Autopilot prepares to pass left [CREDIT: CR]
Tesla’s Full Self-Driving Package, which now adds $12,000 to the price of new models, is an enhanced driver assistance system that requires drivers to keep an eye on the road. However, Tesla is currently offering an extended suite of capabilities called the Full Self-Driving Beta to drivers who qualify according to a safety score determined by the company.
Wednesday’s update also included a confirmation that Cybertruck, Roadster and Semi all postponed in 2023. “Honestly, we’ve got enough on our plates right now,” Musk said.
