After a rough start, Tesla appeared to get back on track during the third quarter, beating both sales and earnings estimates. But, buried amidst all the financial data, the automaker and its CEO had some significant product news to make, and it wasn’t good for those hoping to get into a more affordable Tesla – or the EV maker’s potentially rocket-powered Roadster.
Tesla CEO Elon Musk had some significant product news on Wednesday.
Tesla’s on-again/off-again entry-EV program appears to be dead and buried, CEO Elon Musk revealed during an earnings call on Wednesday evening. Only a matter of months ago, the controversial executive had indicated Tesla had renewed its focus on delivering a product that would appeal to potential EV buyers priced out of the market. That isn’t to be, it now seems, Musk describing such a product as “silly.”
The news was only slightly better for those looking at the long-awaited Tesla Roadster which, at one point, Musk suggested might even be offered with a rocket assist package. Apparently, it’s been delayed again as Tesla shifts focus to its autonomous CyberCab and Optimus robot projects.
But, don’t worry about Tesla stepping away from the consumer market. At one point during the lengthy call, Musk suggested Tesla just might jump into the emerging market for flying cars.
How cheap is too cheap?
Tesla was, until now, looking to build a cheaper EV, reportedly coming in at about $25,000.
With the average EV now costing close to $60,000, and the lowest-priced Tesla starting at over $40,000, many analysts believe that sticker shock is as much a turn-off for potential EV buyers as range anxiety and the lack of a robust public charging network. That’s led several manufacturers – including Ford Motor Co. – to shift attention away from high-end products to more affordable models.
Musk has, at various times, indicated Tesla was working on a $25,000 entry offering. Insiders have reported that this project has been stopped, then restarted, several times. It now appears the mercurial CEO has formally pulled the plug, describing the effort as “pointless.”
“Basically, having a regular ($25,000) model is pointless,” he said in response to an investor’s question.. “It would be silly. It would be completely at odds with what we believe.”
“The future is autonomous”
Tesla’s recently debuted Cybercabs will utilize Full Self-Driving technology.
The news didn’t come entirely as a surprise. There’s been a growing sense, among observers, that Tesla appears to be downgrading its focus on conventional, retail passenger vehicles. The last big news in that category came in November 2023 when the CEO handed over the first set of keys for the long-delayed Cybertruck.
For 2024, the biggest announcement came this past month with news that Tesla intends to launch a small robotaxi, dubbed Cybercab, as well as a larger, driverless van, by 2026. It’s also amping up development of its humanoid Optimus robot.
“I think we’ve been very clear that the future is autonomous,” Musk said during the conversation which brought together investors, analysts and members of the media.
More Tesla News
- Tesla Beats Q3 Earnings Forecast
- Tesla Cybertruck Misses Mark Again with Costly Range Extender
- Tesla Announced Extended-Range Cyberbeast
Tesla Roadster delayed again
The second-gen Tesla Roadster is delayed, again.
It’s been a full seven years since Tesla announced that it would build an all-new version of its very first product line, the Roadster. While the carmaker hasn’t pulled the plug, it’s again delayed the project, it seems.
Over the years, Musk has dropped some tantalizing hints. At one point suggesting Tesla could offer optional rocket boosters to literally launch the Roadster from 0-60 in less than a second. And he indicated it would have a top speed of over 250 mph.
But, while he said Wednesday that a final design is “close,” he made it clear the new version of the 2-seater won’t be back in production this year, despite earlier promises. “It’s really going to be something spectacular,” Musk claimed, but he declined to set a new target date.
Flying Tesla?
Toyota recently increased its stake in Joby Aviation. Could Tesla be working on its own flying car or robotaxi? Musk only dropped a hint.
Considering Musk’s fascination with aerospace – and his ownership of breakthrough rocket company SpaceX – it’s probably no surprise that he dropped another potential bombshell during Wednesday’s call.
When one investor on the call brought up the topic of a possible Tesla flying car, Musk left hanging the comment, “Well, we’ll see. More to come. Yeah.”
That’s not a complete surprise. Several other automakers, including Toyota and Hyundai, have launched flying car programs – though most such efforts are actually focusing on flying taxis. Musk didn’t say whether his latest project might be more of a flying version of the Cybercab than something based on the likes of a Model Y.
Of course, considering the number of programs he has announced – and then dropped – over the years, it’s hard to tell whether that might go the way of the $25,000 EV, or simply be put on indefinite hold, like the Tesla Roadster.
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