Tesla is introducing a robotaxi on August 8, Elon Musk has announced on X a few hours after Reuters published a report that the automaker is scrapping its plans to produce a low-cost EV. Reuters also said that Musk's directive was to "go all in" on robotaxis built on the company's small-vehicle platform. Tesla has been promising a more affordable EV with prices expected to start at $25,000 for years, and Musk said as recently as this January that he's optimistic the model will arrive in the second half of 2025. In response to the report, the Tesla chief tweeted that "Reuters is lying (again)." He didn't clarify which part of the report was a lie, but considering he confirmed that Tesla is unveiling a robotaxi, he likely meant the news organization's claim that the company pulled the plug on a more affordable EV. At the moment, Tesla's cheapest vehicle is the Model 3, but its prices start at $39,000. It'll be interesting to see how the company will make a robotaxi work with its camera-only system — it dropped radar and other sensors, which robotaxi companies like Waymo use extensively, from its driver assistance technologies a few years ago.

Tesla to Introduce Robotaxi

Elon Musk's Announcement and Response to Reuters Report

Elon Musk announced on X that Tesla will introduce a robotaxi on August 8, shortly after a Reuters report claimed that the automaker was abandoning plans for a low-cost EV. Musk's directive was reported to be focused on "going all in" on robotaxis built on Tesla's small-vehicle platform.

Key Takeaways

Tesla has been promising a more affordable EV, but recent reports suggest a shift in focus towards robotaxis. The company's decision to drop radar and other sensors from its driver assistance technologies raises questions about the viability of its camera-only system for a robotaxi.

Implications of Tesla's Strategy

The move to prioritize robotaxis over a low-cost EV signals a strategic shift for Tesla. Musk's tweet calling out Reuters suggests a discrepancy in reporting, highlighting the challenges of deciphering Tesla's future plans amidst ongoing developments in the EV industry.