Tesla’s much-anticipated $25,000 electric vehicle, once positioned as an affordable, human-driven car for the mass market, has taken a surprising turn. Recent statements from CEO Elon Musk reveal that Tesla has deprioritized this vehicle for human drivers, instead pivoting toward a fully autonomous model known as the “Cybercab.”
In April, a report from Reuters suggested that Tesla had halted its long-awaited plans for a $25,000 EV intended for human operation, leading to a dip in Tesla’s stock. Musk quickly countered on X, his social media platform, dismissing the report as inaccurate. However, on Tesla’s October 23 earnings call, Musk acknowledged that a low-cost, human-driven vehicle was no longer in Tesla’s sights, describing it as “pointless” without full autonomy.
When asked directly by an investor about the prospects of a $25,000 non-robotaxi model, Musk stated, “We’re not making a non-robo…” before being interrupted. He clarified that a traditional $25,000 model was “silly” given Tesla’s autonomous goals. Instead, Tesla’s focus has shifted to the “Cybercab,” a two-door, two-seat autonomous vehicle, with Musk showcasing a prototype at a Hollywood-style event on October 10.
Tesla’s pivot comes after years of setbacks, particularly in missed opportunities and manufacturing delays. Originally, Tesla’s vision for a $25,000 EV was a core part of its ambition to reach 20 million vehicle sales annually by 2030. Yet as Tesla’s competitors surged ahead, the company began reconsidering its approach. By May, Tesla had even removed this 20-million sales target from its sustainability report. In January, Musk reaffirmed the company’s commitment to an affordable vehicle by 2025, hinting at a revolutionary production method. However, by April, plans had changed, with Musk signaling that Tesla’s next budget-friendly offerings would be manufactured on existing platforms.
The unveiling of the Cybercab, Tesla’s new $25,000 vehicle designed exclusively for autonomous driving, initially sparked excitement but later left Wall Street underwhelmed. During an event in Los Angeles, Tesla presented the Cybercab alongside the concept of “Robovan” and humanoid robots, but many investors felt the presentation lacked concrete product details. Moreover, the Cybercab’s sporty, two-seat design led analysts to question its suitability as a robotaxi, given limited passenger and luggage space.
While Musk asserts that the Cybercab’s design is “optimized for autonomy” and affordable at $25,000, doubts persist about its real-world applicability and appeal. The model will reportedly exclude a steering wheel and pedals, emphasizing Tesla’s autonomous aspirations but raising questions about regulatory, technical, and legal hurdles.
Industry analyst Seth Goldstein from Morningstar Research Services remarked that Tesla’s strategy shift could reflect the company’s need to remain competitive against Chinese EV manufacturers who have advanced in producing affordable electric models. Tesla, Goldstein noted, may now aim to release a more budget-friendly vehicle based on its current lineup, priced in the mid-$30,000s range, rather than launching an entirely new platform.
As Tesla fans and investors wait to see if the Cybercab meets its 2026 production timeline, the shift signals a broader trend within the company: prioritizing a driverless future over the traditional.
