Even as Tesla, Inc. (NASDAQ:TSLA) shares took a beating from confirmation regarding a round of massive layoffs, including those of high-profile executives, a new report said on Monday the electric- vehicle maker has in fact put on hold the development of its low-cost vehicle.
What Happened: Tesla has stalled the development of the proposed $25,000 EV, which the Street referred to as Model 2, said Electrek, citing sources familiar with the matter. The report said internally, the project was codenamed NV9.
The report comes close on the heels of CEO Elon Musk denying a Reuters report that said the U.S. EV giant is scrapping the project.
The Electrek report said the rumored postponement of the project is due to the company’s decision to deploy all resources on hand to the self-driving project. Incidentally, Musk told his Giga Austin team in December that expanding the factory for the manufacturing of the new cheaper, next-gen model was a priority for 2024, the report added.
However, the project ...