The decision represents an abandonment of a longstanding goal that Tesla chief Elon Musk has often characterized as its primary mission: affordable electric cars for the masses. His first “master plan”, opens new tab for the company in 2006 called for manufacturing luxury models first, then using the profits to finance a “low cost family car.”

Tesla shares were down about 3% in early afternoon trading after the Reuters report.

Musk has since repeatedly promised such a vehicle to investors and consumers. As recently as January, Musk told investors that Tesla planned to start production of the affordable model at its Texas factory in the second half of 2025, following an exclusive Reuters report detailing those plans.

  • @Everythingispenguins
    5•8 months ago

    Anyone with a minute of spare time and access to the Internet can easily see why this is the end of Tesla as an independent company. Success in the automobile market is cars for the masses. Time and time you see a company who made it bread and butter on small cars buying up luxury brands as they failed

    • VW owns Lamborghini and Bentley
    • Tata owns Jaguar Land Rover
    • Fiat owns Maserati (and apparently 12 other bands) Aston is independent but has declared bankruptcy seven times. And Ferrari used to part of Fiat but was spun off)

    I am sure there is more, the money is and has always been in small cheap cars. Making luxury only cars is a road to failure.