Tesla abandons affordable EV for robotaxi plan amidst layoffs
- Tesla has changed its focus from a low-cost electric vehicle to a robotaxi model, announced in April 2024.
- This strategic shift has led to significant layoffs and departures of key personnel, highlighting low morale among staff.
- The company's new direction raises questions about its future in the growing market for electric and autonomous ride-sharing services.
In April 2024, Tesla shifted its strategy from developing a $25,000 electric vehicle (EV) to focusing on a robotaxi model, which caught many employees off guard. This decision coincided with significant layoffs that affected morale within the company. As a direct result of this strategic pivot, Tesla's CFO and general counsel departed from their positions, and the company furloughed 30 additional workers, signaling underlying structural changes. Concurrently, the market for electric and autonomous vehicles continues to grow, with notable funding rounds in startups like Beta Technologies and DeepRoute.ai, highlighting the competitive landscape Tesla is navigating. The decision to prioritize robotaxi development over a low-cost EV may reshape Tesla's future offerings and customer base, particularly in urban environments where ride-sharing services are becoming more prevalent.