Tesla Not Working on $25,000 Electric Car Right Now, Says Elon Musk

During Tesla’s Q4 2021 earnings call, the automaker provided an update on its $25,000 USD car.

“We’re not currently working on the $25,000 car,” said CEO Elon Musk. “At some point we will,” he added, saying Tesla has “enough on our plate right now,” and it’s “too much, frankly” at the moment.

Musk said the question asked about the $25,000 Tesla was framed incorrectly, stating, “the thing that overwhelmingly matters is when the car is autonomous,” and when this happens, the cost of transport would drop by a factor of 4 or 5, he said.

Back in 2020, Tesla announced at its Battery Day event they would be making a $25,000 electric vehicle that would be fully autonomous.

Musk said today he believes Full Self-Driving will be “achievable this year” with a safety level greater than that of a person. The CEO is known for his optimistic timelines, so it’s unclear if this may happen in 2022.

The automaker said it would not be releasing new models this year, due to the ongoing chip shortage and supply constraints. This means Cybertruck is delayed, along with Semi and Roadster. If Tesla were to release new models, it would mean fewer production of existing cars and deliveries.