Key Takeaway
Elon Musk has shifted Tesla’s strategy from developing a US$25,000 electric car to focusing on AI ventures, including robotaxis and humanoid robots. He acknowledges high demand for affordable vehicles but notes that potential buyers often lack sufficient funds. Despite a minor refresh of the Model Y, sales remain subdued. The recent launch of the Cybertruck has seen only 52,000 units sold in the U.S. since 2023, which analysts view as disappointing compared to earlier expectations.
A change in strategy?
While Musk has consistently promoted the potential of mass-market vehicles, he abandoned plans last year to produce a US$25,000 electric car and redirected resources towards AI initiatives, including robotaxis and humanoid robots.
“The interest in purchasing the car is very high,” he states. “The issue is that people don’t have sufficient funds in their bank accounts to make the purchase. Therefore, the more affordable we can make the car, the better.”
Earlier this year, Tesla updated its Model Y with minor enhancements, but sales have remained sluggish.
Tesla’s last significant product launch – the Cybertruck – has achieved US sales of only 52,000 units since deliveries commenced in 2023, which analysts view as disappointing compared to previous expectations.
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