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Robotaxi aside, a $25,000 EV would be pointless, Tesla CEO says

By Nick Godt Published October 27, 2024

Blue Tesla Model 3 Highland on the road — Tesla

Enthusiasts expecting to one day put their hands on the steering wheel of a $25,000 Tesla EV may feel like they’ve been taken for a ride.

CEO Elon Musk has just put a serious damper on those expectations, saying that outside of the driverless Robotaxi recently unveiled by Tesla, a regular $25,000 model would be “pointless” and “silly.”

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During a conference call with investors, Musk was asked to clarify whether such a model was in the works.

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“Basically, having a regular $25K model is pointless,” Musk said. “It would be silly. It would be completely at odds with what we believe.” Tesla, Musk continued, has “been very clear that the future is autonomous.”

On October 10, Tesla unveiled its much-awaited robotaxi, called the Cybercab, an autonomous-driving EV with no steering wheel or pedals. The company also unveiled the Robovan, a much larger autonomous vehicle expected to carry people or goods.

The automaker said the Cybercab is expected to be produced in 2026 and cost $30,000. Musk, meanwhile, said that it would be a $25,000 car without specifying if that price tag included federal tax credits.

Tesla’s ambiguity about an affordable entry-level model has been going on for years. In 2020, Musk signaled that a $25,000 Tesla would arrive within three years. It was later reported that Tesla had ditched the idea, instead favoring the development of a robotaxi.

Language within Tesla’s latest financial report still hints that new affordable Tesla models are on the way. But Musk’s latest comments are putting a floor on just how affordable these would be. So far, Tesla’s Model 3 Rear-Wheel-Drive remains the company’s cheapest model, with a base price of $38,990.

Some rival EV makers, meanwhile, are entering the affordable space more aggressively in the U.S.

General Motors has already put out its Chevy Equinox EV at a price of $27,500, including federal tax credits. Volkswagen America says it plans to release an under-$35,000 EV in the U.S. by 2027.

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Freelance reporter

Nick Godt has covered global business news on three continents for over 25 years.

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EV sales surge could continue as Trump delays ending federal rebates, report says

Second-Gen Rivian R1S on a road

A surge in sales of electric vehicles in the final months of last year could continue well into 2025, as consumers continue to take advantage of federal tax incentives while they last, according to a report by the Associated Press.
On the day of his inauguration, President Donald Trump signed an executive order titled “Unleashing American Energy”, which says the government is “considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies.”
During his campaign, Trump’s team said it was planning to end the Biden administration’s $7,500 tax credit on the purchase or lease of an EV, although it did not provide a timeline for doing so.
Americans rushed to take advantage of the incentive, helping fuel a surge of more than 15% in EV sales in the fourth quarter, according to Cox Automotive.
Recent surveys show that incentives have played a major role in fueling EV sales over the past few years, and that a majority of Americans are in favor of government incentives to help with the purchase of an EV.
Meanwhile, the wording in Trump’s executive order, which says his administration is still 'considering' its options, leaves room for ambiguity about the timing of its application.
“Temporarily, sales of EVs could skyrocket as car-buyers rush to take advantage of existing tax credits,” the report by the Associated Press says.
In order to repeal the EV tax credit, the Trump administration will need to obtain the approval of congress. The process will likely take place as part of broader negotiations on extending Trump’s first-term tax cuts, which are due to expire near the end of 2025.
It’s also not entirely clear if the Trump administration will seek to end the whole of the $7,500 EV tax incentive. In order to obtain the incentive for the purchase of an EV, restrictions apply for high-income households and for EVs with non-U.S. made batteries. But those restrictions don’t apply to leasing an EV.
According to Cox Automotive, members of the Trump administration are particularly keen on ending “this leasing loophole, which was created partly to appease Korean and Japanese automakers, who have invested billions in U.S. EV manufacturing.”
Ending rebates and other subsidies for EVs is also likely to meet challenges, be they legal or political, from different actors.
The Zero Emission Transportation Association (ZETA), a trade group whose members include the likes of Tesla, Waymo, Rivian, and Uber, has come out in support of incentives for both the production and the sale of EVs.
ZETA says the incentives for both EV and battery-makers have led to enormous investments and job gains in Republican-dominated states like Ohio, Kentucky, Michigan, and Georgia.

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Tesla Model Y Juniper vs Rivian R1S: Can Tesla’s newest take out a much more expensive vehicle?

Tesla Model Y 2025.

Tesla and Rivian actually have a lot in common. Both are relatively new companies in the grand scheme of things, at least compared to the legacy automakers that are now switching to EVs, but their actual vehicles are pretty different. The Tesla Model Y is the most popular electric vehicle in America, serving as a high-tech crossover for those interested in buying a Tesla. The Rivian R1S is Rivian's electric SUV, obviously boasting a larger body, but also putting tech first.

On top of the Tesla Model Y being the most popular EV right now, it's also in the midst of getting a major refresh in the form of the Model Y Juniper. We're still early on in the rollout of that refresh, though. While Tesla has released the Model Y Juniper in its base form in China, the version of the vehicle being sold in the US right now is the so-called Launch Edition New Model Y, which is a high-performance version of the Model Y Juniper that comes with a high price tag. For this comparison, we'll use the specs from the both the entry-level Model Y Juniper being sold in China, and the launch edition New Model Y being sold in the U.S. Keep in mind, however, that until the Model Y Juniper gets a wider U.S. release, only the previous-generation Model Y is being sold alongside the Launch Edition New Model Y

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Tesla Model Y Juniper vs Kia EV9: Can the new Model Y beat a large SUV?

White Tesla Model Y Juniper at a Supercharger

America's most popular electric vehicle, the Tesla Model Y, is getting a major refresh. Tesla already launched the Tesla Model Y Juniper in China, but now it's bringing the vehicle to the US.

Of course, the new Model Y has to go up against a host of competitive electric vehicles, some of which are larger, some faster, and some even cheaper. The Kia EV9 has been hailed for being one of the few full-size electric SUVs that offers a high-quality driving experience without completely breaking the bank.

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