Tesla gives up on plans to build a low-cost car – report

Elon Musk has long said that the holy grail of popularizing EVs was coming from Tesla with a car that would cost as little as $20,000.

That dream now appears to be dead. Reuters reports that Tesla has cancelled plans for a low cost car.

Shares of Tesla are down 3% and slumping as the report crosses.

The low-cost inexpensive car has been promised by Musk for years and was counted on by investors to drive mass-market adoption of the brand. Instead, the company will focus on developing self-driving robotaxis.

The dream of ‘affordable electric cars for the masses’ was the guiding light of Tesla, Musk has said.As far back as 2006 he said the ‘master plan’ was to build luxury cars first then us profits to finance a low-cost family car.

However it appears that market has been cracked by Chinese automakers instead.

This article was written by Adam Button at www.forexlive.com.