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Elon Musk denies report claiming that Tesla has scrapped its affordable car
Elon Musk has denied a recent report from Reuters claiming that Tesla has scrapped its affordable car, which is expected to be priced at around $25,000. The publication claimed that it received information about the cancellation of Tesla’s low-cost EV program from three individuals reportedly familiar with the matter.
Reuters’ report was quite surprising considering that Tesla already seems to be preparing for its next-generation vehicles, which are expected to be comprised of an affordable car and a dedicated robotaxi that are created from the same platform. The publication’s sources reportedly claimed that Tesla has scrapped its affordable car in favor of a push towards self-driving robotaxis.
Reuters is lying (again)— Elon Musk (@elonmusk) April 5, 2024
Musk’s reaction to Reuters’ report was immediate, with the CEO stating in a post on social media platform X that the publication was lying again. Reuters, however, claimed to have reviewed company messages to suppliers about NV91 and H422, the affordable car’s reported designation. The publication also claimed to have reviewed messages from a Tesla manager discussing the low-cost EV’s supposed cancelation.
While it remains to be seen if Tesla’s affordable car was really halted or not, expectations were already high that the low-cost EV and dedicated robotaxi would be built on the same platform. Thus, even if Tesla were to focus more resources now on the robotaxi, it likely does not mean to say that the company is canceling its low-cost EV. Both vehicles might be very similar, after all, though the affordable car will have a steering wheel and pedals.
?— Elon Musk (@elonmusk) April 5, 2024
Elon Musk seemingly gave a nod to such speculations on X, with the CEO posting an “eyes” emoji as a response to a Tesla watcher who wondered if Tesla may be shifting more resources to FSD and the dedicated robotaxi due to the impressive results of FSD V12.
Musk has been pretty critical of Reuters’ reports on Tesla over the years, and the publication has also been pretty critical of the CEO and the electric vehicle maker. Just this past February, Reuters staff won the 2023 George Polk Award for Business Reporting for their critical coverage of alleged “nefarious practices” at companies owned by Musk. In November 2022, Musk also denied a report from the publication claiming that Tesla was considering importing vehicles from Giga Shanghai to the United States. Musk’s denial has been accurate as of writing.
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Tesla Cybercab undergoes winter testing as Elon Musk reiterates production start date
CEO Elon Musk confirmed the timeline in a recent post on X, while Tesla’s official social media accounts separately revealed that Cybercab prototypes are now undergoing winter testing in Alaska.
Tesla has reiterated that production of its fully autonomous Cybercab is set to begin in April, even as the company continues expanding real-world testing of the vehicle.
CEO Elon Musk confirmed the timeline in a recent post on X, while Tesla’s official social media accounts separately revealed that Cybercab prototypes are now undergoing winter testing in Alaska.
Musk confirms April Cybercab initial production
In a post on X, Musk reiterated that Cybercab production is scheduled to begin in April, reiterating his guidance about the vehicle’s manufacturing timeline. Around the same time, Tesla shared images showing the Cybercab undergoing cold-weather testing in Alaska. Interestingly enough, the Cybercab prototypes being tested in Alaska seemed to be equipped with snow tires.
Winter testing in Alaska suggests Tesla is preparing the Cybercab for deployment across a wide range of climates in the United States. Cold temperatures, snow, ice, and reduced traction present some of the most demanding scenarios for autonomous systems, making Alaska a logical proving ground for a vehicle designed to operate without a human driver.
Taken together, Musk’s production update and Tesla’s testing post indicate that while the Cybercab is nearing the start of manufacturing, validation efforts are still actively ramping to ensure reliability in real-world environments.
What early Cybercab production might look like
Musk has previously cautioned that the start of Cybercab manufacturing will be slow, reflecting the challenges of launching an all-new vehicle platform. In a recent comment, Musk said initial production typically follows an S-curve, with early output constrained by how many new parts and processes are involved.
According to Musk, both Cybercab and Optimus fall into this category, as “almost everything is new.” As a result, early production rates are expected to be very deliberate before eventually accelerating rapidly as manufacturing processes mature.
“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk wrote in a post on X.
Elon Musk
Tesla to increase Full Self-Driving subscription price: here’s when
Tesla will increase its Full Self-Driving subscription price, meaning it will eventually be more than the current $99 per month price tag it has right now.
Already stating that the ability to purchase the suite outright will be removed, Tesla CEO Elon Musk said earlier this week that the Full Self-Driving subscription price would increase when its capabilities improve:
“I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD).”
This was an expected change, especially as Tesla has been hinting for some time that it is approaching a feature-complete version of Full Self-Driving that will no longer require driver supervision. However, with the increase, some are concerned that they may be priced out.
$99 per month is already a tough ask for some. While Full Self-Driving is definitely worth it just due to the capabilities, not every driver is ready to add potentially 50 percent to their car payment each month to have it.
While Tesla has not revealed any target price for FSD, it does seem that it will go up to at least $150.
I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve.
The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD). https://t.co/YDKhXN3aaG
— Elon Musk (@elonmusk) January 23, 2026
Additionally, the ability to purchase the suite outright is also being eliminated on February 14, which gives owners another reason to be slightly concerned about whether they will be able to afford to continue paying for Full Self-Driving in any capacity.
Some owners have requested a tiered program, which would allow people to pay for the capabilities they want at a discounted price.
Unsupervised FSD would be the most expensive, and although the company started removing Autopilot from some vehicles, it seems a Supervised FSD suite would still attract people to pay between $49 and $99 per month, as it is very useful.
Tesla will likely release pricing for the Unsupervised suite when it is available, but price increases could still come to the Supervised version as things improve.
This is not the first time Musk has hinted that the price would change with capability improvements, either. He’s been saying it for some time. In 2020, he even said the value of FSD would “probably be somewhere in excess of $100,000.”
The FSD price will continue to rise as the software gets closer to full self-driving capability with regulatory approval. It that point, the value of FSD is probably somewhere in excess of $100,000.
— Elon Musk (@elonmusk) May 18, 2020
News
Tesla starts removing outright Full Self-Driving purchase option at time of order
Tesla has chosen to axe the ability to purchase Full Self-Driving outright from a select group of cars just days after CEO Elon Musk announced the company had plans to eliminate that option in February.
The company is making a clear-cut stand that it will fully transition away from the ability to purchase the Full Self-Driving suite outright, a move that has brought differing opinions throughout the Tesla community.
Earlier this week, the company also announced that it will no longer allow buyers to purchase Full Self-Driving outright when ordering a pre-owned vehicle from inventory. Instead, that will be available for $99 per month, the same price that it costs for everyone else.
The ability to buy the suite for $8,000 for a one-time fee at the time of order has been removed:
NEWS: Tesla no longer allows buyers to purchase FSD outright in the U.S. when ordering a pre-owned vehicle directly from inventory. Tesla now gives you the option to either subscribe for $99/month, or purchase FSD outright after taking delivery (available until February 14th). pic.twitter.com/1xZ0BVG4JB
— Sawyer Merritt (@SawyerMerritt) January 23, 2026
This is a major move because it is the first time Tesla is eliminating the ability to purchase FSD outright for one flat fee to any of its vehicles, at least at the time of purchase.
It is trying to phase out the outright purchase option as much as it can, preparing people for the subscription-based service it will exclusively offer starting on February 14.
In less than a month, it won’t be available on any vehicle, which has truly driven some serious conversation from Tesla owners throughout the community.
There’s a conflict, because many believe that they will now lose the ability to buy FSD and not pay for it monthly, which is an attractive offer. However, others believe, despite paying $8,000 for FSD, that they will have to pay more money on top of that cost to get the unsupervised suite.
Additionally, CEO Elon Musk said that the FSD suite’s subscription price would increase over time as capabilities increase, which is understandable, but is also quite a conflict for those who spent thousands to have what was once promised to them, and now they may have to pay even more money.
