Elon Musk says Reuters 'lying' in reporting Tesla scrapped plan for low-cost car
Reuters stands by its reporting after Musk slams story that sent Tesla shares down
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Tesla CEO Elon Musk accused Reuters of "lying" on Friday after the outlet reported the electric vehicle behemoth is abandoning its long-touted plans to produce a budget-friendly starter car.
Citing three unnamed "sources familiar," Reuters reported that Tesla has scrapped its initiative to roll out an inexpensive car for the masses, purportedly called Model 2, that was expected to start at $25,000. The outlet said it had reviewed several internal Tesla documents confirming the project's demise.
Tesla CEO Elon Musk accused Reuters of "lying" on Friday after the outlet published a report claiming Tesla has abandoned its plan for an inexpensive entry-level vehicle. (REUTERS/Gonzalo Fuentes / Reuters Photos)
In reaction to the report, Musk wrote on X, "Reuters is lying (again)."
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Reuters added Musk's response to its article, and noted that "[h]e did not identify any specific inaccuracies." The outlet also pointed out that Tesla's stock price fell by nearly 5% following its report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 357.09 | +11.93 | +3.46% |
Tesla, Inc.
FOX Business has reached out to Tesla for comment.
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Musk has teased for years that a lower-cost Tesla model would be coming, and has slashed costs on existing models over the past year amid a global price war for EVs as the industry competes to attract more budget-conscious consumers amid elevated interest rates.
New Tesla electric vehicles fill the car lot at the Tesla retail location in Smithtown, New York, on July 5, 2023. (John Paraskevas/Newsday RM via Getty Images / Getty Images)
The price-cutting wars are particularly pronounced in the Chinese EV market, where Tesla has a major presence and domestic manufacturers are rolling out models that retail for as low as $10,000, per Reuters.
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Tesla's Model 3 is currently its most affordable offering, starting at around $39,000 in the U.S.