Tesla executives questioned Musk after he denied killing $25,000 EV project
'Reuters is lying,' Musk had posted on X, minutes after the story published on April 5, 2024, halting a 6% decline in Tesla's stock. Tesla shares recovered some of the loss after Musk's post, but the stock was down 3.6% at market close.
The executives knew that Musk had, in fact, cancelled the low-cost vehicle, which many investors called the Model 2, and pivoted Tesla to focus on self-driving robotaxis, the people said. The company had told employees the project was over weeks earlier, Reuters reported, citing three sources and company documents.
Musk's post was so confusing to some senior managers that they asked him whether he'd changed his mind. Musk rejected their concerns and said the project was still dead, according to the people with knowledge of the matter.
The executives' concerns, which haven't been previously reported, shed light on the company's struggle to deliver a low-cost, mass-market EV, considered a core promise of the company.
Some other Tesla executives were unconcerned about Musk's X post, said people familiar with the matter. The carmaker keeps its product plans flexible, one person said, to respond to market conditions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
5 hours ago
- TimesLIVE
Starlink rival Eutelsat beats estimates on Ukraine boost, government demand
French satellite operator Eutelsat reported better than expected annual earnings on Tuesday, driven by growing interest in its satellite internet services from government and corporate customers. Eutelsat gained the spotlight this year as European governments sought home-grown solutions for satellite services, aiming to reduce their reliance on US providers such as Elon Musk's Starlink. Revenues from video, connectivity and government services reached €1.23bn (R25.59bn) in the year ended June 30, up 0.8% from a year earlier. Financial analysts had expected the revenues to total €1.21bn (R25.18bn), according to a consensus poll provided by Eutelsat. The Paris-based group hopes to offset declining income from its video business by gaining a foothold in the satellite internet market, where Starlink dominates. However, CEO Jean-François Fallacher told reporters the company 'won't compete head-to-head with Starlink or Amazon's Kuiper in consumer markets', focusing instead on segments that make it competitive.
TimesLIVE
6 hours ago
- TimesLIVE
Autopilot verdict deals Tesla 'black eye', threatens Musk's robotaxi ambitions
A court verdict against Tesla last week, stemming from a fatal 2019 crash of an Autopilot-equipped Model S, could hurt its plans to expand its nascent robotaxi network and intensify concerns about the safety of its autonomous vehicle technology. A Florida jury ordered Elon Musk's electric vehicle (EV) company on Friday to pay about $243m (R4.37bn) to victims of the crash, finding its Autopilot driver-assistance software defective. Tesla said the driver was solely at fault and vowed to appeal. The verdict follows years of federal investigations and recalls related to collisions involving Tesla's autonomous vehicle technology and comes as CEO Musk seeks regulatory approval to rapidly expand the robotaxi service in the US. 'The public perception of this verdict or things such as this are going to fuel pressure on regulators to say, 'We just can't let this stuff be launched without a lot more due diligence',' said Mike Nelson, founder of Nelson Law and an expert on legal issues in the mobility sector. Tesla could have a tough time convincing state regulators that its technology is road-ready, threatening Musk's goal of offering robotaxis to half the US population by year-end, legal experts and Tesla investors said. Expanding its robotaxi service is crucial for Tesla as demand for its ageing line-up of EVs has cooled amid rising global competition and a backlash against Musk's far right political views. Much of Tesla's trillion-dollar market valuation hinges on his bets on robotics and artificial intelligence (AI). Success in the self-driving realm will require winning the confidence of regulators and potential customers on the full-self driving (FSD) software that underpins Tesla's robotaxis, analysts said. 'The timing [of the verdict] for Tesla in light of the FSD rollouts and robotaxis is awful,' said Aaron Davis, co-managing partner at law firm Davis Goldman. 'Now there's essentially an opinion that some aspect of Tesla's business is not safe and maybe the safety the company advertises isn't what it's cracked up to be.' The FSD is an advanced version of Autopilot. Autopilot, which was been updated since 2019, controls speed, distance and lane centring on highways, while the FSD can operate on city streets, helping the vehicle make automatic turns and change lanes. 'This case does not have direct implications for Tesla's FSD rollout,' analysts at Piper Sandler said in a note on Sunday, citing the modern iterations of the software. A spokesperson on behalf of Tesla acknowledged the company had received a request for comment from Reuters but had not provided one by the time of publication. Perfecting autonomous vehicles has been harder than expected. The high cost of hardware, years of trial and error and regulatory hurdles have forced many players to close shop or pivot, including General Motors' Cruise unit. Musk, however, has pursued what he calls a simpler and cheaper path, relying only on cameras and AI instead of pricey sensors such as lidars and radars used by Alphabet's Waymo, Amazon's Zoox and others. After years of missed deadlines, Musk rolled out a small robotaxi trial in June with about a dozen Model Y crossover SUVs in Austin, Texas, each overseen by a human safety monitor in the front passenger seat. While Musk has said Tesla was being 'super paranoid about safety', he has also pledged to expand the service fast and make it available for half of the US population in the next five months — a stark contrast to Waymo's cautious years-long rollout. Until Tesla's entry, Waymo was the only US firm to operate a paid, driverless robotaxi service. Tesla is awaiting approvals in several states, including California, Nevada, Arizona and Florida. California's department of motor vehicles declined to comment on the impact of the verdict on regulatory approval. Nevada said it held talks with Tesla about a robotaxi programme several weeks ago, while Arizona said it was still considering Tesla's request for certification. Both did not comment on the verdict. Florida did not respond. Tesla has typically won other Autopilot litigation or resolved the case with the plaintiffs out of court. The Florida verdict stands out. Several such cases are pending. The case involved a Model S sedan that went through an intersection and hit the victims' parked Chevrolet Tahoe as they were standing beside it. The driver had reached down to retrieve a dropped cellphone and allegedly received no alerts as he ran a stop sign before the crash. The jury found Tesla's Autopilot had a defect and held the company partially responsible, despite the driver admitting fault. 'It's going to take time to get regulators to move forward and time being more than the end of the year,' said Gene Munster, managing partner at Deepwater Asset Management, a Tesla investor. 'From an image standpoint, it's a black eye.'
TimesLIVE
10 hours ago
- TimesLIVE
Australia's NBN picks Amazon's Project Kuiper over Starlink for remote internet
Australia's state-owned internet network hired Amazon's untested startup satellite service to link people who cannot access its terrestrial network, rather than tech entrepreneur Elon Musk's Starlink. The deal, whose financial terms were not disclosed, is set to provide high-speed internet access to some 300,000 homes and businesses that NBN Co's terrestrial network does not reach. From next year, low-Earth orbit satellites owned by Amazon's Project Kuiper will start replacing two Australian government-owned satellites due for decommissioning in 2032, NBN and Amazon said in a joint statement on Tuesday. "It is true that Amazon Kuiper has not launched services yet in Australia or globally, but they are reportedly pumping in about $15bn (R270.58bn) into that programme," said Gavin Williams, NBN's chief development officer for regional and remote services. "We have every confidence that we've got a partner in Kuiper that will do what they say they're going to do." NBN said its decision followed a rigorous procurement process, but did not say why it had chosen the Amazon service over Starlink.
