According to a credible new report, Elon Musk has reportedly shut down an internal analysis from Tesla executives that showed the company’s Robotaxi plans would lose money and that it should focus on its more affordable ‘Model 2’.
This decision culminated a long-in-the-making shift at Tesla from an EV automaker to an AI company focusing on self-driving cars.
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We credit that shift initiated by Musk for the current slump Tesla finds itself in right now, where it has only launched a single new vehicle in the last 5 years, the Cybertruck, and it’s a total commercial flop.
Now, The Information is out with a new in-depth report based on Tesla insiders that describe the decision-making process around the cancellation of the affordable Tesla and the focus on Robotaxi.
The report describes a meeting at the end of February 2024 when several Tesla executives were pushing Musk to greenlight the $25,000 Tesla:
In the last week of February 2024, after a couple of years of back-and-forth debate on the Model 2, Musk called a meeting of a wide range of executives at Tesla’s offices in Palo Alto, Calif. The proposed $25,000 car was on the agenda—a final chance to air the vehicle’s pros and cons, the people said. Musk’s senior lieutenants argued intensely for the economic logic of producing both the Model 2 and the Robotaxi.
After unveiling its next-generation battery in 2020, Musk announced that Tesla would make a $25,000 EV in 2020, but he had clearly soured on the idea by 2024.
He said in October 2024:
I think having a regular $25,000 model is pointless. Yeah. It would be silly. Like, it’ll be completely at odds with what we believe.
The Information says that Daniel Ho, head of Tesla vehicle programs, Drew Baglino, SVP of engineering, and Rohan Patel, head of business development and policy, Lars Moravy, vice president of vehicle engineering, and Franz von Holzhausen, chief designer, all pushed for Musk to greenlight the production of the new $25,000 model.
The executives pointed to an internal report that didn’t paint a good picture of Tesla’s Robotaxi plan. The report has credibility as Patel commented on it:
We had lots of modeling that showed the payback around FSD [Full Self Driving] and Robotaxi was going to be slow. It was going to be choppy. It was going to be very, very hard outside of the U.S., given the regulatory environment or lack of regulatory environment.
Musk dismissed the analysis, greenlighted the Cybercab, and killed the $25,000 driveable Tesla vehicle in favor of the Model Y-based cheaper vehicle with fewer features.
The information describes the analysis:
Much of the work was done by analysts working under Baglino, head of power train and one of Musk’s most trusted aides. The calculations began with some simple math and some broad assumptions: Individuals would buy the cars, but a large portion of the sales would go to fleet operators, and the vehicles would mostly be used for ride-sharing. Many people would give up car ownership and use Robotaxis. Tesla would get a cut of each Robotaxi ride.
The analysis followed a lot of Musk’s assumptions, such as that the US car fleet would shrink from 15 million a year to roughly 3 million due to Robotaxis having a 5 times higher utilization rate.
They subtracted people who wouldn’t want to switch to a robotaxi for various reasons, arriving at a potential for 1 million self-driving vehicles a year.
One of the people familiar with the analysis said:
There is ultimately a saturation of people who want to be ferried around in somebody else’s car.
After accounting for competition, Tesla figured it would be hard for robotaxis to replace the ~600,000 vehicles it sells in the US annually.
Tesla calculated that the robotaxis would bring in about $20,000 to $25,000 in revenue at the sale and about three times that from Tesla’s share of the fares it would complete over their lifetimes:
The analysts figured Robotaxis would sell for between $20,000 and $25,000, and that Tesla could make up to three times that over the lifetime of the cars through its cut of fares. They added in capital spending and operational costs, plus services like charging stations and parking depots.
The internal analysis assigned a much lower value to Tesla robotaxis than Musk had previously stated publicly.
In 2019, Musk said:
If we make all cars with FSD package self-driving, as planned, any such Tesla should be worth $100k to $200k, as utility increases from ~12 hours/week to ~60 hours/week.
Furthermore, Tesla’s internal analysis pointed toward difficulties expanding into other markets, which could limit the scale and profitability of the robotaxi program. Ultimately, it predicted that it could lose money for years.
Electrek’s Take
For years, this has been one of my biggest concerns about Tesla: Musk surrounding himself with yesmen and not listening to others.
This looks like a perfect example. It was a terrible decision fueled by Musk’s belief that he was smarter than anyone in the room and encouraged by sycophants like Afshar.
Musk has been selling Tesla shareholders on a perfect robotaxi future, but the truth is not as rosy, and that’s if they solve self-driving ahead of the competition, which is a big if.
It’s not new for the CEO to make outlandish growth promises, but it’s another thing to do at the detriment of an already profitable and fast-growing auto business.
The report also supports our suspicions that the shift in strategy contributed to some of Tesla’s talent exodus last year.
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Hot on the heels of the Fiat 4×4 Grande Panda Manifesto comes another subcompact Stellantis compact with electric drive and off-road ambitions. Meet the Opel Frontera GRAVEL – which might be our best look yet at the next-generation electric Jeep Renegade coming in 2027.
Based on a lifted Frontera EV and riding on a set of bespoke, 7×16″ Borbet CWE wheels wrapped in aggressive AT tires, Opel says its all-electric Frontera GRAVEL’s emissions-free driving makes it ideally suited for “soft-roading” nature drives (their words, not mine), with a rugged, adventurous 4×4 appearance.
Those rugged, Jeep-like good looks are backed up enhanced by the usual overland accessories, including a front-mounted winch, side storage boxes at the rear, and a lattice-style roof rack. A slew of accessory lights mounted on the Thule Canyon XT carrier and hood, as well, for excellent nighttime visibility off-road and (presumably) retina-searing intensity on-road.
“The new Opel Frontera is already standout,” says Rebecca Reinermann, Vice President of Marketing for Stellantis’ Opel and Vauxhall brands. “It is rugged, practical, and perfect for families and everyday adventures. But with the Frontera GRAVEL show car, we’ve pushed the limits, imagining a tougher, more daring, trailblazing version. This concept is built to fire up our fanbase and test the demand for a bolder, more rugged Frontera in the future. It’s all about freedom, adventure, excitement and pushing boundaries.”
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Like the recent Fiat concept mentioned at the top of this post, the production Frontera EV is based on Stellantis’ “Smart Car” BEV-native platform, and features a 113 hp electric motor and more than 300 km of WLTP range (about 185 miles) standard, with the “long range” version able of traveling up to 400 km (about 250 miles) between charges.
Either version comes with the “Pure Panel” digital cockpit featuring dual 10″ displays. For a few dollars quid more, the GS trim adds automatic climate control and Intelli-Seat front seats. And, if Mopar Insider has any idea what’s up, it might actually make for a decent little Jeep Renegade replacement (below).
Electric Jeep Renegade rendering
2027 Jeep Renegade rendering; via ChatGPT.
The Opel Frontera first came to our attention last October, when it became the first new EV from Stellantis to be offered with both ICE and battery power, for the same price – making EV price parity an objectively real thing.
Jeep parent company Stellantis has already confirmed that a new Jeep Renegade that’s priced below the upcoming Jeep Compass EV would be coming to the US as a 2027 model, and it’s expected to share its mechanicals with both the Frontera and Fiat’s recently teased Grande Panda Manifesto. If that does anything for you, let us know in the comments.
Year after year, a seemingly endless raft of all-electric concept bikes wearing Honda badges have made their way across the motor show stage without ever making it onto the dealer showroom. But now, it’s here: this unmissable, cafe racer-inspired electric Honda motorcycle is the company’s first – and you can buy it!
We got our first look at this first-ever production electric motorcycle from Honda back in March, when leaked type-approval documents hinted at a 75 mph 125 cc-class motorcycle with cafe racer styling and a “WH8000D” designation first surfaced. It was clear, then, that Honda was seriously working on a for-real electric motorcycle – what wasn’t clear was when (or even if) it would ever see productions.
The wait is over
Honda E-VO 75 mph electric motorcycle; via Honda.
The new Honda E-VO is available in dual- or triple-battery versions that feature either 4.1 or 6.2 kWh of battery capacity. On the triple-pack version, riders can enjoy up to 170 km WMTC (about 105 miles) of riding. Recharging takes about 2.5 hours on a standard outlet or about 90 minutes on an L2 (like the Harley-Davidson backed Livewire or Vespa Elettrica electric bikes, DC fast charging is not available).
Both battery configurations drive a motor with a peak power of 15.3 kW, or about 20 hp. And, like all electric motors, all the torque is available at 0 rpm, giving the Honda E-VO in-town performance similar to much higher (than 125 cc) displacement bikes.
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In addition to superior stop-and-go performance, the Honda E-VO offers riders a number of other innovative (for a motorcycle) features, including a 7-inch TFT instrument display paired with a second 7-inch TFT screen for navigation, music, tire pressure, and battery SOC information. The smaller battery pack version of the E-VO includes a front dash cam, while the larger model has both a front and rear dash cam as standard equipment.
The Honda E-VO is available in the black and off-white color schemes (shown). Prices start at 29,999 yuan, or about $4500 for the 4.1 kWh version, and 36,999 yuan (about $5100) for the 6.2 kWh triple-pack version.
Electrek’s Take
Honda E-VO electric motorcycle; via Honda.
Yes, this is a Chinese-market bike built by Honda’s Chinese Wuyang venture. No, we probably won’t ever get something like this in the US, where a raucous, 113 hp 600 cc CBR600RR is somehow positioned as a “good starter bike” by cowards with 3″ wide chicken strips on their tires. That said, if the motorcycle industry as-a-whole wants to survive in North America, zippy, affordable, lightweight motorcycles are exactly what’s needed.
Here’s hoping we get something like this stateside rather sooner than later.
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Westerners in-the-know look longingly at the affordable, value-packed electric cars rolling out of China – but what could you get if money was no object? If you were to spend 100,000 US American dollars on a Chinese EV, how good could these Chinese cars really get? Huawei’s 852 hp Maextro S800 is the answer.
Packing up to 852 hp and a cutting-edge technology stack developed by Huawei, Chinese luxury brand Maextro revealed its latest entry into the Mercedes-Maybach EQS and Rolls-Royce Spectre segment of ultra-luxe EVs, the S800, back in February. Now, it’s officially on sale, priced at 708,000 and 1,018,000 yuan (approx $97,500-140,000), and ready to make an entrance.
As I wrote at the car’s launch, the Maextro S800’s bespoke, purpose-built platform doesn’t share any parts with a lesser offering in the Huawei lineup in the same way a Mercedes or BMW or Volkswagen does with a Maybach, Rolls-Royce, or Bentley, respectively. And, while I admit that that may not mean much to you and me, I maintain that it might to the people shopping six- and seven-figure cars. And that might be especiallytrue to people willing to shell out that kind of cash for a car in China’s generally lower-priced market.
That seems to be the kind of upmarket experience people of the People’s Republic want, if the S800’s two thousand initial orders (in just two days) are and indication. And, lucky for those buyers, the Maextro is set to deliver plenty in return.
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The vibe is immaculate
Maextro S800 at launch; via Huawei.
Those well-heeled buyers will get a choice of EREV or “pure” battery electric powertrains good for between 480 and 852 all-electric horsepower. 32 ADAS sensors including both radar and lidar compliment a suite of cameras analyze the road ahead and feed data to Huawei’s ADS road perception system, which is constantly adjusting torque distribution, suspension compression and rebound, and front and rear steering to deliver a tech-driven chauffeur experience that Huawei insists is second to none.
Huawei says its robotic driver is pretty handy when the weather gets nasty, too, thanks to an advanced sensor array that helps to increase the detection distance in rain, fog, and dust by 60% compared to the benchmarked competition.
While the car is its passengers around, they’ll get to enjoy luxurious, reclining rear seats with next-level mood lighting handled by a fully independent rear passenger system that supports intelligent track lighting, gesture dimming, and a panoramic “starry sky” moonroof that includes meteor shower effects.
The Maextro S800 also offers intelligent privacy glass and a unique door-closing function are also controlled with advanced gesture controls, in case you needed reminding that China is living in the year 3000 while the US is being plunged headlong into the 1940s by a pack of pseudo-conservatives too old to realize their gold standard policies will do nothing but hurt a fiat economy that’s consistently proved out the basic hypotheses behind modern monetary theory over the last five or six decades – but that’s a lot for an EV blog.
Instead of that, let’s ooh and ahh over the Maextro S800’s ultra-luxe interior in the photo gallery, below, then keep the debate to the relative merits of one of these over, say, a Mercedes-Benz EQS in the comments.
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