Tesla’s $25,000 EV Project NV9 Hits Roadblock, Release Pushed Back

Apr 15, 2024 10:23 PM EDT

COMPUTER IN TESLA CAR — (Photo : PEXELS/Vladimir Srajber)

Tesla continues to forge ahead with its pioneering efforts. The company has embarked on the development of a 'next-generation vehicle platform. It targets to ushering in a new era of affordable electric mobility. Contrary to earlier speculation about the project's fate, Tesla hasn't scrapped its plans for the NV9 outright. Instead, reports suggest a strategic decision to postpone its development.

This pivot in focus aligns with Tesla's broader vision, as it directs resources towards advancing its autonomous driving technology and the transformative robotaxi initiative. Meanwhile, the NV9 $25,000 EV project experiences a temporary delay.

Tesla Delay EV Project

Recent news resulted to speculation on the cancellation of Tesla's highly anticipated $25,000 vehicle. However, the CEO, Elon Musk, immediately addressed the news, and denied it.

As per Electrek's report, Tesla has decided to delay the launch of its much awaited NV9 project, which is the main component of its ambitious $25,000 electric vehicle program. The NV9, often called the "Model 2," has been shelved despite earlier promises from Elon Musk.

This choice is made in the midst of Tesla's continuous attempts to utilize its "next-generation vehicle platform" in order to realize the possibility of more reasonably priced electric vehicles. Inside this framework, Tesla had already revealed plans for two different cars: a smaller model that sits beneath the Model 3 and is commonly referred to as the "$25,000 Tesla" or "Model 2," and a revolutionary Tesla Robotaxi designed for self-driving use.

Based on insights from Electrek's sources, it has been substantiated that Tesla has decided to delay the NV9 project, an integral component of its $25,000 electric vehicle initiative. Internally referred to as 'NV9,' the program has been temporarily put on hold, marking a strategic shift in Tesla's development timeline.

Electrek's report further stated that while Elon Musk may dispute the notion of outright cancellation, the reality is that the NV9 project is currently sidelined, with Tesla redirecting all resources towards its self-driving endeavors.

Sources familiar with the situation reveal that as recently as December 2023, Musk had emphasized the importance of NV9, designating it as a key priority for the forthcoming year and even earmarking expansion plans at Gigafactory Texas to accommodate the production of the new budget-friendly model.

However, in a significant turn of events, the project has now been completely defunded, leading to a wave of layoffs among those involved, as part of the recent restructuring efforts announced by the company. Shortly after refuting the report regarding the cancellation of the more affordable model, Musk declared that Tesla would reveal its Robotaxi on August 8th.

Technopedia also weighed in on the latest developments surrounding Tesla's $25,000 EV project. However, the certainty of its realization remains uncertain. Sources speaking to Electrek indicated that the project's expansion was encountering delays, potentially missing the end-of-August deadline set by Musk.

This setback, if accurate, represents another obstacle in Tesla's quest to offer more affordable electric vehicles. The company has long teased the prospect of a budget-friendly car and even outlined plans for battery cost reductions during its 2020 Battery Day event, with the aim of introducing a $25,000 model within three years.

Both the proposed budget vehicle and the ambitious robotaxi initiative are thought to be built upon a previously announced next-generation platform designed to facilitate the production of inexpensive EVs.

The future of Tesla's efforts to create an affordable machine remains uncertain, leaving the Model 3, currently priced starting at $35,990, as the brand's most accessible offering for the time being. While this positioning may not pose an immediate competitive threat, especially with rivals like Chevy's Equinox EV starting at $34,995, it also fails to significantly broaden the appeal of electric vehicles to a wider audience.

Tesla Teases Robotaxi

Elon Musk, according to a Forbes report, tweeted that Tesla will debut the much-anticipated custom robotaxi vehicle on August 8th. The vehicle has been under discussion for several years. Tesla is providing all Tesla owners with a complimentary one-month trial of its "Supervised Full Self Driving" package, which was previously known as "Full Self Driving."

The system used to require constant supervision, but now just costs $100 a month instead of $200 for a subscription. This change suggests fewer customers will choose the previous $12,000 one-time payment option. Tesla seems to be positioning its upcoming robocar/robotaxi as a more cost-effective alternative to traditional vehicles.