Internal tensions at Tesla surfaced last year as senior executives reportedly challenged CEO Elon Musk over his public denial of canceling a planned $25,000 electric vehicle (EV) — a project investors viewed as critical to the company's growth. According to sources familiar with the matter, Musk's abrupt April 2024 social media post claiming "Reuters is lying" about the project's termination contradicted internal communications confirming its cancellation weeks earlier.
The denial temporarily stabilized Tesla's stock, which had dropped 6% following Reuters' report. However, executives privy to the decision to pivot resources toward self-driving robotaxis reportedly sought clarity from Musk, who reaffirmed the low-cost EV's cancellation. The move left many questioning Tesla's strategy as competitors like China's BYD gain momentum in affordable EVs. BYD's $10,000 Seagull model has outsold Tesla in Europe and is reshaping global market dynamics.
Analysts note Tesla's aging lineup and declining sales highlight the urgency for accessible EVs. While Musk previously called a budget model "pivotal," the company has yet to confirm plans for such a vehicle. Meanwhile, BYD's aggressive pricing and expanding footprint underscore Asia's growing influence in the automotive sector, offering investors and industry watchers fresh opportunities to assess shifting trends.
