US Tesla Executives Questioned Elon Musk After He Denied Canceling $25,000 Electric Car Project

Last year, some top Tesla executives were shocked when Elon Musk publicly denied a report saying the company had canceled its plan to make a new affordable electric car. This car, often called the Model 2, was expected to cost around $25,000 and help Tesla sell more vehicles worldwide. However, behind the scenes, Musk had already decided to stop the project and focus on self-driving robotaxis instead.

The confusion started when a news report in April 2024 said Tesla had canceled the Model 2. Minutes after the report came out, Musk posted on his social media platform, X, saying, “Reuters is lying.” His message stopped Tesla’s stock from falling further, but some executives inside the company knew the truth—the project was really over. Weeks before Musk’s post, employees had already been told the Model 2 was canceled.

Some senior managers were so surprised by Musk’s denial that they asked him if he had changed his mind. But Musk told them no—the project was still canceled. This left some executives worried that investors were being misled about Tesla’s plans. However, other leaders at Tesla were not bothered by Musk’s post, saying the company often changes its plans based on market conditions.

A year later, Tesla still hasn’t released a cheap electric car, even though Elon Musk once said it was crucial for the company’s future. Instead of a brand-new $25,000 car, Tesla is now working on cheaper versions of its existing Model 3 and Model Y. Meanwhile, Tesla’s sales have been dropping in many countries because its lineup of cars is getting old, and competitors are offering newer, more affordable electric vehicles.

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Credits: Wikicommons Tesla Owners Club Belgium, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons

Musk has always been known for making bold statements, but this situation showed how his words can create confusion, even inside his own company. Some investors and fans had been excited about the Model 2 for years, believing it would make electric cars affordable for more people. But now, it seems Tesla has moved in a different direction.

Recently, Musk also announced that he is stepping down as a special advisor to former U.S. President Donald Trump to focus more on his companies, including Tesla, SpaceX, and his other ventures. This decision comes at a time when Tesla is facing challenges, including slower sales and increasing competition in the electric car market.

The story of the canceled Model 2 highlights the challenges Tesla faces as it tries to grow while keeping up with Musk’s ambitious vision. While the company continues to work on self-driving cars and other high-tech projects, many customers and investors are still waiting for the affordable electric car that was promised years ago.

For now, Tesla’s future plans remain unclear. Will the company eventually release a truly low-cost electric car, or will it keep focusing on more expensive models and futuristic technology? Only time will tell, but one thing is certain—Elon Musk’s decisions will continue to shape Tesla’s path in surprising ways.

The confusion over the Model 2 also raises questions about how much investors and the public can trust Musk’s statements. While he is known for thinking big and taking risks, sometimes his words don’t match what’s actually happening inside Tesla. This has led to debates about whether his leadership style helps or hurts the company in the long run.

Despite these challenges, Tesla remains one of the most famous electric car companies in the world. Its cars are still popular, and its technology is seen as some of the best in the industry. But as other carmakers catch up with their own electric models, Tesla will need to find new ways to stay ahead.

The story of the canceled Model 2 is just one example of how fast things can change at Tesla. One day, the company is working on a cheap car for the masses, and the next, it shifts focus to robotaxis and artificial intelligence. For fans and investors, keeping up with Tesla’s plans can sometimes feel like riding a rollercoaster—full of excitement, but also unexpected twists and turns.

As Tesla moves forward, the big question is whether it can balance Musk’s big ideas with the practical needs of running a successful car company. Will Tesla find a way to make electric cars affordable for everyone, or will it keep focusing on high-tech projects that take years to develop? Whatever happens, one thing is clear—Tesla’s journey is far from over, and the world will be watching closely.

In the end, the canceled Model 2 serves as a reminder that even the biggest companies can change direction suddenly. For Tesla, the challenge now is to prove that its new plans—whether they involve robotaxis, cheaper versions of existing cars, or something else entirely—will lead to long-term success. And for Elon Musk, the challenge is to keep inspiring confidence in Tesla’s future, even when the road ahead is uncertain.

The electric car market is growing fast, and Tesla has played a huge role in making that happen. But as competition increases, the company will need to adapt quickly to stay on top. Whether that means bringing back the idea of a $25,000 car or finding another way to attract buyers, Tesla’s next moves will be crucial in shaping the future of electric vehicles.

For now, all we can do is wait and see what Elon Musk and Tesla decide to do next. One thing is for sure—whatever happens, it won’t be boring. Tesla’s story is still being written, and the next chapter could be just as surprising as the last.

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