The strange story of a $25,000 Tesla

The dream of an affordable Tesla, or at least one more affordable than the base Model 3, has fueled the hopes of millions of potential buyers and fans of the brand for years. But the $25,000 Tesla story is a labyrinth of promises, denials and plot twists, culminating with Musk calling the idea “absurd” and “nonsense.”

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Why is this important. The story of the $25,000 Tesla is a tale of the challenges of creating truly affordable electric vehicles, as well as the tensions between Tesla’s two visions: a fully autonomous future, which has gained weight over time, and a more gradual transition. this leaves room for human control.

Background. It all started in 2020. On the company’s Battery Day, Musk confidently promised to release a $25,000 electric car by 2023.

His conviction came from a belief in advances in battery technology. “We are confident that we can create a very attractive electric car for $25,000 that is also fully autonomous,” he said.

behind the scenes. Walter Isaacson’s biography of Musk reveals internal divisions within the company over the project. Franz von Holzhausen, the chief designer, championed the idea of ​​a traditional car with an easily removable steering wheel and pedals.

Musk, however, gave priority to the idea of ​​a robotaxi: a vehicle that does not require manual control.

turning point. In September 2022, an obvious compromise was reached: to develop both cars. According to Isaacson, Musk even said in February 2023 that he “loved the design” of both versions.

Everything changed in April 2024 when Reuters He said that Tesla has abandoned the idea of ​​a car with a manual transmission. That is, the original Tesla idea for $25,000.

Current situation. In Tesla’s latest quarterly results presentation, Musk finally buried the idea of ​​a traditional $25,000 Tesla. He said it was an “absurd” and “pointless” idea and that his vision centered on a Cybercab, a robotaxi without a steering wheel or pedals.

His idea is to start production of the latter, as recently announced, in 2026.

What’s changing. Tesla now promises a car “under $30,000” (including rebates and subsidies) but designed with fully autonomous driving in mind.

The company is fully committed to this future. Electric and autonomous cars are the norm. Automobiles powered by an internal combustion engine (and driven by humans) make riding a horse and using a landline telephone seem like a car.

In Hatak | Tesla has sharply increased its earnings. And he did it by finding gold outside of selling cars.

Featured Image | Xataka with Midjourney