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Tesla is reportedly focusing on robotaxis over its planned budget EV

Tesla has scrapped plans to make an affordable electric vehicle (EV), according to Reuters. CEO Elon Musk said as recently as January that he was “optimistic” the low-cost EV would arrive in the second half of 2025.

The canceled entry-level EV project — often called “Model 2” — was reportedly codenamed “Redwood.” The automaker had predicted a weekly production volume of 10,000 vehicles, and Musk said, “We’ll be sleeping on the line” to make it a reality. For nearly two decades, the CEO has described his long-term goal as using luxury vehicles to build Tesla’s brand before using those profits to fund budget models. Musk posted on X (Twitter) on Friday, “ Reuters is lying (again)” in response to the story — without listing any points of contention.

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