Some senior Tesla executives are raising concerns over CEO Elon Musk's public handling of a highly anticipated electric vehicle project that could have made EVs more affordable for everyday drivers.
A new Reuters report details how back in April 2024, Musk denied a Reuters exclusive at the time that Tesla had scrapped plans for an all-new $25,000 EV — sometimes called the Model 2 — despite having internally canceled the project weeks earlier. According to insiders, Musk's brief denial on X, formerly known as Twitter, confused many Tesla executives, who feared it could mislead investors and customers waiting for an affordable EV option.
Tesla had once promised this low-cost EV would feature cutting-edge manufacturing designed to lower prices and broaden access to cleaner transportation. But instead, the company has pivoted to offering stripped-down versions of existing models — updates to the Model 3 sedan and Model Y SUV — now expected in 2025.
The stakes are high for consumers. With EV prices still out of reach for many households, a $25,000 Tesla could have offered a more accessible alternative to gas-powered cars. It could also have helped lower air pollution by accelerating the shift to cleaner vehicles on the road.
But after Musk's denial, some Tesla executives worried that public confusion would backfire. "The denial made no sense," one insider told Reuters, adding that some customers might delay purchases, hoping for a model that's no longer in the pipeline.
The internal tension comes as Tesla faces mounting sales challenges. The company posted its first annual vehicle sales decline in 2024, with a small 1.1% drop from 2023, but sales dropped 13% in the first quarter of 2025 year over year. Meanwhile, competitors like BYD are gaining ground with more affordable EVs — BYD's entry-level Seagull hatchback starts under $10,000 in China.
For consumers, these shifting priorities mean keeping an eye on actual available models — not just headline-grabbing promises.
And for anyone looking to make their EV purchase even more cost-effective, installing solar panels can dramatically increase savings by powering your car with free solar energy instead of paying for grid electricity. EnergySage makes it easy to compare quotes from vetted local installers and save up to $10,000 on solar installations. While buying panels isn't in everyone's budget, leasing programs like Palmetto's LightReach allow you to lock in low rates and install panels for no money down.
As one Tesla investor put it, Musk's post was "brief and abrupt" — and whether the promised $25,000 EV will ever arrive remains an open question.
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