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Why Elon Musk Thinks a $25,000 Tesla for Human Drivers is “Pointless”
- Elon Musk has made clear that producing a $25,000 Tesla for human drivers would be 'pointless' if it didn't operate autonomously.
- This marks a significant shift in Tesla’s trajectory toward a two-seat, fully autonomous 'Cybercab,' rather than the 'Model 2' many had anticipated.
- During Tesla's Q3 earnings call, Musk explained that the $25,000 Cybercab will have no steering wheel, pedals, or need for human control.
- Tesla is now focusing on creating a fully autonomous future to maintain its competitiveness and relevancy in the EV market.
- Experts speculate that Tesla decided against a new, lower-cost platform for an affordable EV to remain competitive, and will instead build any 'budget' model on current platforms priced around the mid-$30,000s.
- The Cybercab unveiled in October is optimized for autonomy, but some analysts worry its two-seat configuration may limit its appeal in the robotaxi sector.
- Musk's ambition for fully autonomous versions of the Model 3, Model Y, and Cybercab to hit the road by next year in California and Texas may be held up by regulatory approvals and safety and reliability concerns.
- Tesla's recent pivot may give competitors BYD, Nio, and Volkswagen a chance to fill the gap for consumers seeking traditional, affordable EVs without autonomous technology.
- Tesla's gamble is a bold one, and whether the Cybercab and other autonomous vehicles deliver on Musk's promises remains to be seen.
- For now, Tesla has shifted its focus towards marketing the Cybercab as the company's gateway to autonomy and reckons it is likely to start production in 2026.
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