During the Q&A webcast related to Q4 2021 financial results, Tesla CEO Elon Musk answered a question about the progress on the rumoured $25,000 (approx. £18,000) electric car.
As it turns out, there is no such project right now, but it sounds like there is a potential chance in the future. The company is currently overwhelmed by other projects.
“We’re not currently working on the $25,000 car... At some point we will, but we have enough on our plate right now, too much on our plate, frankly.”
Elon Musk added that the question is wrong, as the most important thing is "when" the car will be fully autonomous.
Once that happens, he explains, the cost of transport will drop by 4-5 times.
As we understand, people don't have to buy a less expensive car, because there will be plenty of autonomous taxis that provide an affordable transportation service.
In another part of the Q&A, Tesla stressed the focus on scaling up the volume and focusing on margins. Even the models that have already been confirmed for production (Cybertruck, Semi and Roadster), are postponed to an indefinite point (no earlier than 2023).
It's worth noting that even if Tesla would be able to introduce a significantly less expensive car, there are reasons not to do it. Some were pointed out by Sandy Munro in late 2020, who thinks that it would be bad for profits. Additionally, Tesla's customers often want "all of the bells and whistles."
Well, with a few models waiting for launch for another 1-2 years, including a robot, we would not make much of the $25,000 electric car rumour. Especially with the inflation that makes it difficult even to maintain the same level of prices.