In a bold pivot from earlier promises, Tesla CEO Elon Musk recently declared that a $25,000 entry-level Tesla is “pointless” and “silly,” signaling a significant shift in Tesla’s vision for the future. During the Q3 2024 earnings call, Musk addressed questions about Tesla’s on-again, off-again plans for an affordable EV and the long-awaited second-generation Roadster. His response shed light on Tesla’s new direction, with autonomy at its core and traditional lower-cost vehicles left in the dust.
For years, Tesla enthusiasts and investors hoped for an affordable, accessible Tesla model. Musk himself teased the possibility of a $25,000 electric vehicle (EV) back in 2020, saying that Tesla would deliver on this goal within three years. But now, that vision appears to have veered off-course, with Musk rejecting the idea entirely. “We’re not making a non-robotaxi model,” Musk stated, emphasizing that the future of Tesla—and the automotive industry, as he sees it—is in autonomous vehicles rather than low-cost, consumer-driven models.
Instead of focusing on the mass-market EV Musk once promised, Tesla is doubling down on its efforts to develop self-driving technology. Musk likened the focus on non-autonomous vehicles to the era of flip phones and horse-drawn carriages, suggesting that, in Tesla’s view, anything short of autonomous driving capabilities is outdated technology.
“A $25,000 regular model is pointless,” he added. “It would be completely at odds with what we [Tesla] believe.” This shift underscores Tesla’s redefined mission of prioritizing self-driving technology over affordability, with the vision that fully autonomous EVs are the future—and for Tesla, that future is quickly approaching.
Beyond affordability, fans have also been eagerly awaiting the arrival of Tesla’s Roadster 2.0. First unveiled in 2017, the Roadster was promised as a groundbreaking, high-performance EV that could reach top speeds and travel distances previously unheard of for electric cars. However, the Roadster has repeatedly faced delays, with Tesla prioritizing other projects such as the Cybertruck and the expansion of its Gigafactories.
During the Q&A session, Musk addressed the topic with humor but little reassurance for those who’ve held deposits on the vehicle. “The reason it hasn’t come out yet is because it’s not just the icing on the cake, but the cherry on the icing on the cake,” Musk quipped, describing the Roadster as a “dessert” rather than a priority. He mentioned Tesla’s primary goal remains the pursuit of a sustainable future, which he sees as a more pressing task than delivering luxury sports cars.
Although Musk hinted that the Roadster could be nearing a finalized design, he refrained from providing any concrete release date. To add a twist, Musk even entertained the idea of a “flying car,” nodding to a conversation with fellow billionaire Peter Thiel, who lamented the lack of flying vehicles in modern technology. Whether this comment was a hint at future aspirations or simply Musk’s flair for theatrics remains unclear.
As Tesla continues to lead the EV market, Musk’s comments reflect a shift in priorities: making EVs autonomous, not affordable. While some may question the feasibility of a widespread autonomous future in the near term, Musk remains unwavering, stating that autonomy is “blindingly obvious” as the future of transportation. He believes traditional non-autonomous vehicles will soon be seen as antiquated technology, predicting they’ll fade in popularity much like landlines and typewriters.
However, not everyone is convinced. The challenges of autonomous driving remain high, and while Tesla’s software-based approach to autonomy (focusing solely on camera sensors rather than LiDAR) is unique, it’s also controversial in an industry where no company has yet achieved fully autonomous, driverless technology on a mass scale.
As Tesla shifts gears, it may be disappointing for those who were counting on a more affordable Tesla or eagerly waiting for their Roadsters. But if Musk’s predictions hold, Tesla’s strategy could propel it into the lead of a driverless revolution.
