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Tesla $25K compact electric car prototype has been completed: rumor

Credit: Julien Jodry/Twitter

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It appears that Tesla China is making good progress in its development of the highly-anticipated $25k compact electric car. If recent rumors from China are any indication, it appears that the upcoming affordable EV is still planned for trial production for the end of 2021. 

The update about Tesla China’s newest electric vehicle was shared by noted automotive segment leaker 不是郑小康, who has proven to be accurate in the past. According to the industry leaker, the prototype for Tesla’s $25K car has already been completed, and most suppliers for the vehicle’s production have already been lined up. 

With this in mind, it would not be surprising if Tesla China’s affordable electric car actually enters its trial production phase by the end of the year. It should be noted, of course, that these updates are considered rumors for now, despite them being shared by a prolific source that has proven reliable to date. 

The development of the $25K Tesla from China has pretty much been kept secret, though previous filings and interviews with company executives have provided some hints at the development of the upcoming vehicle. Back in January, for example, local media outlet Sina Motors reported that Tesla had already started the environmental impact assessment for the $25K car. 

The China-based publication reported back then that the first batch of the $25K Tesla would likely be testing at the latter half of the year. A prototype being completed in the third quarter does seem to go in line with these reports. This bodes well for the EV maker, especially since Tesla China President Tom Zhu confirmed back in February that the highly-anticipated vehicle would be made available worldwide

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“The center is in Tesla Gigafactory Shanghai, where we are now. We are now building our China R&D center right here. This R&D center is also the first Tesla R&D center outside the United States…In the future, we want to design, develop and produce an original model in China, manufactured here and sold to the whole world. This R&D center is the starting point of the goal,” Zhu said. 

Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Watch the first true Tesla Robotaxi intervention by safety monitor

Watch the first Tesla Robotaxi intervention by a safety monitor.

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Credit: Dave Lee

Nearly 60 hours into the launch of the Tesla Robotaxi platform, it appears we have our first true intervention that required the in-car safety monitor to intervene.

We’ve seen and heard about a handful of minor issues with the Robotaxi fleet thus far, one of which included a risky, but very human-like behavior of navigating across yellow lines to a turn lane after missing a turn.

While that is not necessarily a legal maneuver, it is something that you’d see commonly from human drivers, and although aggressive, it is sometimes reasonable to perform depending on traffic conditions.

For what it’s worth, the car seemed very confused by the situation, and while the safety monitor did not get involved and the car handled the situation with no real issue, it is something as a rider you’d like to see less of.

First Look at Tesla’s Robotaxi App: features, design, and more

As previously stated, that specific example did not require any intervention by a safety monitor. On Tuesday, we saw a video of the first true intervention that required the safety monitor who sits in the passenger seat to intervene by pressing a button on the center touchscreen.

During a ride that Tesla investor and YouTuber Dave Lee was taking in Austin in a Robotaxi, the vehicle seemed to get a little confused by a UPS truck that was parallel parking in front of it. The monitor pressed the “Stop in Lane” button on the touchscreen:

This appears to be one of the first errors shared by Tesla Robotaxi Early Access Program users that required the monitor to actually intervene. We have not seen any of it yet. You could also see the UPS truck is also a bit at fault here, as the space it pulled into did not seem even remotely large enough to fit the entire vehicle.

The car may not have anticipated that the truck would park there. You can see how the UPS truck was parked below, and it seems reasonable that the Tesla might not have thought it would attempt to fit there:

Credit: Dave Lee

The Model Y’s steering wheel was also turning sharply right into this spot, it appears. Dave ended his ride here, and stated that this was his dropoff spot. The UPS truck might have just cut off the Tesla, which led to the intervention.

It is a testament to Tesla’s strategy with this Robotaxi rollout. The company is obviously confident enough in the Full Self-Driving suite that it does not feel a human needs to be in the driver’s seat. However, it is still requiring someone, as of now, to sit in the passenger’s seat for instances just like this one.

Safety is the company’s priority with the launch of Robotaxi, and CEO Elon Musk has reiterated that. It is expected that we’d eventually see some kind of intervention that requires a monitor to step in. Everyone was safe.

Obviously, these things happen with autonomous vehicles. We’ve seen Waymos get stuck at intersections in very strange scenarios at times:

It is proof that autonomous tech is still in a growth phase and engineers are still learning about its capabilities. Tesla and other companies will learn from these rare cases and become better companies, and offer safer technologies because of it.

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Tesla removed from Charlotte’s approved EV list due to ‘safety issues’

City reps say it’s not because of Elon Musk’s political involvement, but instead because of safety issues.

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Credit: Tesla

Tesla has been removed from the Charlotte, North Carolina, City Council’s list of pre-approved electric vehicles that the city can purchase.

It’s not because of Elon Musk, Democratic council member LaWana Mayfield said, who urged her colleagues to remove Tesla. Instead, she claims it is because of “safety issues.”

She said (via WFAE):

“So it is not just the particular owner of this product. It is the fact that this product has been in multiple lawsuits because of safety issues, and there are multiple concerns.”

Recent data from Tesla shows that its vehicles are about half as likely to be involved in an accident when being driven normally. When Autopilot technology is used, it is about ten times safer than the average driver in the U.S., statistically.

Tesla Vehicle Safety Report shows Autopilot is 10x better than humans

Republican City Council member Ed Driggs stood up for Tesla, saying that:

“I think we just set a dangerous precedent if we have reasons that aren’t related to the cost and the performance of purchased items for excluding them. We already have Teslas in the fleet.”

If they’re so dangerous, why are they already in the fleet?

The NHTSA also shows that Ford is the most recalled car company in 2025, with 81 total recalls. Tesla has just five for the year.

Driggs said to Mayfield during the meeting:

“We are not identifying names on this list. You are singling out one name on this list for political reasons. You don’t have enough data on Tesla compared to the other car companies to suggest they shouldn’t be here. I object to trying to disguise this as anything other than a politically motivated desire to not have this name on this list.”

Tesla was successfully removed by a 6-3 vote. Democrats Danté Anderson, Malcolm Graham, Renee Johnson, Victoria Watlington, and Tiawana Brown supported Tesla’s removal. Republican Edwin Peacock, along with Driggs and Democrat Dimple Ajmera, all voted no on removing Tesla.

The City of Charlotte will buy 45 new electric vehicles, and Teslas would likely be the best option. Many local law enforcement agencies across the U.S. have utilized them and have shown that the vehicles contribute to massive maintenance and cost of ownership reductions due to the lack of overall upkeep.

Tesla police fleet is saving taxpayers $80k per year on fuel costs: report

This is not the first time that a city in the U.S. has chosen to go in a different direction with its EV fleet plans. Tesla was chosen over Ford by the City of Baltimore for a $5 million expenditure that would bolster its fleet with EVs.

However, earlier this year, Baltimore said it “decided to go in a different direction,” and although it was not directly confirmed, the move seemed to be political.

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Tesla threatened in France with claims of ‘deceptive’ practices

Tesla has been threatened by the Competition, Consumer Affairs, and Fraud Control Office in France after the agency said it is participating in “deceptive business practices” related to its semi-autonomous driving capabilities.

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tesla side repeater camera
(Credit: Tesla)

Tesla has been threatened by the Competition, Consumer Affairs, and Fraud Control Office in France after the agency said it is participating in “deceptive business practices” related to its semi-autonomous driving capabilities.

Investigators in the government office said that Tesla has engaged in deceptive commercial practices over the capabilities of its cars. In the past, other agencies and even some skeptics have said that Tesla’s use of the phrases “Autopilot” and “Full Self-Driving” is inaccurate in terms of its capabilities.

Tesla Autopilot gets stone cast in its direction by Pete Buttigieg

However, Tesla has been transparent with consumers and regulatory agencies that its cars are not yet fully autonomous, meaning drivers could sleep, play on their phones, or pay no attention to the road. The car would take care of steering and speed.

Tesla has never maintained that its cars are capable of this. On its website and in its Owner’s Manuals, it says that drivers are required to pay attention and be prepared to take over in case of an emergency.

The office began the investigation back in 2023 and, this week, ordered Tesla to comply with regulations within the next four months. If it does not, it will face fines of €50,000 per day.

This is not the first time Tesla has had some pushback from regulators regarding the naming of its semi-autonomous driving platforms. Back in 2023, then Secretary of Transportation in the United States, Pete Buttigieg, said the name “Autopilot” was not accurate because it is still a hands-on system:

“I don’t think that something should be called, for example, an Autopilot, when the fine print says you need to have your hands on the wheel and eyes on the road at all times. We call balls and strikes. I view it as something where it’s very important to be very objective. But anytime a company does something wrong or a vehicle needs to be recalled or a design isn’t safe, we’re going to be there.”

He then said that Autopilot and its interaction with the person operating the car is a “real concern.”

 

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