"Tesla Shifts Focus to Robotaxis, Rethinking Budget EV Plans"

Tesla has reportedly abandoned plans to produce an affordable electric vehicle (EV) and will instead focus on developing robotaxis, according to Reuters. The canceled budget model, codenamed "Redwood," was expected to start at around $25,000, leaving the $39,000 Model 3 sedan as Tesla's cheapest vehicle. CEO Elon Musk has long emphasized the importance of using profits from luxury vehicles to fund budget models, but the company now appears to be shifting its strategy. Despite Musk's denial of the report, Tesla faces challenges in a slowing US EV market and fierce competition in China, where BYD is leading the entry-level segment.