Tesla has scrapped plans to make an affordable electric vehicle (EV), according to Reuters. CEO Elon Musk said as recently as January that he was “optimistic” the low-cost EV would arrive in the second half of 2025. The automaker will instead reportedly “go all in” on robotaxis, which Musk has described as the future of transportation.
The canceled entry-level EV project — often called “Model 2” — was reportedly codenamed “Redwood.” The automaker had predicted a weekly production volume of 10,000 vehicles, and Musk said, “We’ll be sleeping on the line” to make it a reality. He had previously claimed Tesla was working on two new EV models expected to sell up to five million units annually.
For nearly two decades, the CEO has described his long-term goal as using luxury vehicles to build Tesla’s brand before using those profits to fund budget models. “When someone buys the Tesla Roadster sports car, they are actually
