Tesla CEO Elon Musk has fired back at news agency Reuters, accusing them of spreading false information about the company’s plans to produce a budget-friendly starter car. This comes after Reuters reported that Tesla had abandoned its initiative to launch an inexpensive car for the masses, known as the Model 2, which was expected to have a price tag of $25,000.
The report from Reuters cited three unnamed sources and reviewed internal Tesla documents confirming the project’s demise. Musk took to social media to call out Reuters, labeling their report as a lie. However, he did not specify any inaccuracies in the article.
Following the release of the Reuters report, Tesla’s stock price took a hit, dropping nearly 5%. Despite this, Tesla has remained tight-lipped on the situation when contacted by FOX Business.
Musk had previously hinted at a lower-cost Tesla model in the works and has even reduced prices on existing models amidst a global price war in the EV industry. The competition for budget-conscious consumers in the EV market is fierce, particularly in China where domestic manufacturers are offering models as low as $10,000.
Currently, Tesla’s most affordable offering is the Model 3, starting at around $39,000 in the U.S. As the EV market continues to evolve and competition heats up, it remains to be seen what Tesla’s next move will be in terms of offering a more budget-friendly option for consumers. Stay tuned to Road Rug Cars for more updates on this developing story.
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