Tesla execs confused by Elon Musk's recent statement about the $25,000 EV cancellation

Last year, Reuters came out with a report confirmed by three different sources within Tesla and internal documents that Musk had abandoned plans to build an affordable $25,000 EV. The CEO was quick to refute the claims and said Reuters was lying.

However, this sparked concerns within the company. At the time, some senior executives knew for a fact that the $25,000 EV plans were scrapped, and Musk even informed employees. This means Tesla's CEO deliberately lied about the affordable EV plans.

It's important to note that other investors and executives were unbothered by Musk's claims, saying that Tesla's plans have always remained flexible to respond to the ever-changing market conditions.

The initial plan was to build an affordable electric car accessible to everyone. It was supposed to be built on a brand new EV platform that would lower the production cost considerably and potentially be used for future higher-end models. Instead, Musk planned to pivot Tesla to the self-driving robotaxi venture.

A year after the rumor, neither Musk nor other executives shared anything promising regarding the possible Tesla Model 2. Now that Tesla is struggling with falling sales and a dated lineup, reports about an affordable EV are resurfacing, but instead of releasing a brand new EV based on a new platform, the carmaker plans to introduce toned-down versions of the currently existing Model 3 and Model Y.

But executives are worried about another SEC investigation regarding last year's Musk X posts about the affordable EV. After Reuters reported on the story about Musk axing the $25,000 EV, stocks fell before bouncing up, after the CEO said the rumors were untrue. This can be seen as market manipulation and if we don't see an affordable Tesla EV soon, the SEC might launch another probe.

It seems there's a struggle within the company, and execs and investors are questioning Elon Musk if the cheap EV development should be resumed.

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