Tesla Cancels Plans for Affordable EV, Prioritizes Robotaxi Development

Elon Musk's announcement of a self-driving Tesla robotaxi overshadows the cancellation of the long-awaited, budget-friendly electric vehicle.

Tesla has abandoned its plans to produce a less expensive electric vehicle, focusing instead on developing a robotaxi.
Elon Musk denies reports of the affordable EV's cancellation but confirms a robotaxi unveiling set for August 8, 2024.
Despite skepticism and Musk's history of unfulfilled promises, Tesla shares see a slight recovery after the robotaxi announcement.
Industry experts express concerns over Tesla's shift in focus, highlighting the challenges of autonomous vehicle technology and regulatory approval.
Analysts remain divided on Tesla's strategy, with some viewing the pivot to robotaxis as risky without a clear path to full autonomy.