Car

Tesla’s $25K car is the Cybercab with no steering wheel or pedals

Tesla set the record straight with its $25,000 vehicle during its recent earnings call. Tesla has no plans to produce a Cybercab with a steering wheel or pedals. The Tesla Cybercab is the $25,000 vehicle everyone has been waiting to see. 

“So, anyway, basically, I think having a regular $25K model is pointless. It would be silly. Like it would be completely at odds with what we believe,” said Elon Musk. 

A few years ago, Tesla was reportedly working on two versions of its robotaxi vehicle: one with no steering wheel and pedals and a second with steering wheels and pedals. Until the recent earnings call, most Tesla investors believed there would still be two versions of the robotaxi vehicles.

For instance, Deepwater analyst Gene Munster predicted that Tesla would unveil a stripped-down Model 3 alongside the Cybercab before the We, Robot event. Munster predicted the stripped-down Model 3 would be Tesla’s $25,000 car

However, in the Q3 2024 earnings call, Musk reiterated Tesla’s belief that the auto industry’s future is autonomous vehicles. And Tesla is sticking to its guns. 

“What we design is optimized for autonomy,” Musk said, referring to the Tesla Cybercab. “It will cost roughly $25K, so it is a $25,000 car. And you will be able to buy one exclusively if you want. So, it just won’t have steering wheels and pedals.” 

Tesla also pointed out that it has the Model Y and Model 3 for customers who seek a more traditional vehicle. The company’s executives hinted that it is working on its manufacturing processes to reduce the costs of its vehicles and make them more affordable. 

However, Tesla is confident that autonomous vehicles are the future and believes that reducing cost per mile is the most significant factor to work on now. Tesla is adamant that its autonomous Cybercab delivers what the future auto industry will require. 

“In [an] autonomous world, what matters is the lowest cost per mile of efficiency of that vehicle. And that’s what we’ve done with the robotaxi,” said a Tesla executive. 

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