Overview

• Elon Musk publicly denied canceling the $25,000 “Model 2” in April 2024 despite internal documents showing the project had ended weeks earlier.
• Senior executives confronted Musk over his denial, warning it could mislead investors and potentially breach his SEC settlement.
• Tesla has shifted focus to self-driving robotaxis and is developing stripped-down trims of its Model 3 and Model Y for rollout in 2025 with pricing yet to be disclosed.
• The company posted its first annual vehicle sales decline in 2024 and recorded a 13% drop in first-quarter 2025 sales following intensified competition from Chinese automaker BYD.
• Musk’s ongoing clashes with the media and regulators have heightened investor skepticism as Tesla grapples with a dated lineup and strategic uncertainty.