exclusive Tesla scraps low cost car plan samid Fierce Chinese EV competition I saw this I thought it was interesting Tesla has cancelled the long promised inexpensive car that investors have been counting on to drive its growth in a mass Market automaker into amass Market automator because againTesla doesn’t have that many cars outthere and they recall them all the timemus is uh since repeatedly promised sucha vehicle to investors and consumers arecently January must told investors that Tesla planned to start productionof the affordable model in the secondhalf of 2025 why would you ever believeanything he says Tesla’s currentcheapest model is 39K the now defunctentry-level vehicle was expected tostart as 20 at 25k Tesla did not respondto requests for comment after the storywas published musk posted on his socialmedia site Twitter that quote Reuters islying again he did not identify anyspecificinaccuracies thank you Reuters forupdating the story to uh to to keep withthe the recent developments you knowthank you very much not mad uh yeah

I please please don’t put in the newspapers that I was mad the Starkreversal comes as Tesla faces Fiercecompetition globally from Chineseelectric vehicle makers flooding themarket with cars priced as low as 10,000nice a person with knowledge of Tesla’splans expressed optimism about decisionto pivot away from the cheap carstrategy in favor of Robo taxis one ofthe highest valued companies in theworld in case you had all brieflyforgotten no people don’t want cheapaccessible uh electric vehicles whatthey want actually is Robo taxis youknow using that proprietary Teslaself-driving thing that keeps up andevery time anyone makes a YouTube videoon it it’s them like recording their carnearly steering off a ditch yeah China’spretty nearly overtaken

Tesla in the uhelectric car market Market byd plus thenext two significantly outweigh Tesla’smarket share squeezing profits fromentry-level Vehicles is a challenge forany automaker but Tesla’s delay inpursuing the car musk once called hisdream made it much tougher because henow faces more competition in that pricerange while Tesla spent years developingits highly experimental cyber truck apricey electric pickup Chineseautomakers have raced ahead andaffordable EVS grabbing market sharegaining economies of scale and offeringconsumers bargain prices that Westernautomakers are struggling to match yeahno the radical dinno my understanding isthat Chinese electric vehicles areactually doing really well dude what the Chinese Electric Vehicles Chinese 3,200 lb budget electric vehicletakes on Tesla oh my God hello 4500hello beep beep I I want it theseChinese cars often have zero featureslike no AC I’m sure you can get like anicer variant that has AC you know butlike at $45,000 I’m surprised it haswheels Jesus having launched that yearthe basic model has a top speed of 62mph and can accommodate four people in asqueeze four Chinese people okay not forAmericans okay guys I’m okay with carsas long as this is the okay maxspeed of 62 mph beep beep can fit likein any space like this is likemotorcycle space taking right hereokay I want it and you can charge itwith a wall outlet can you really youdon’t need like a special Port thatthing is falling apart of the firstAmerican pothole you know cars don’thave to be that expensive like it’s notjust a matter of quality and safetyfeatures and stuff one of the reasonswhy cars are getting more and moreexpensive is because it’s getting moreand more difficult to engineer uhLogistics and safety and uh you know themechanics of a vehicle that is both 3tons and meant to go 150 mes hour onhighways

when no one’s looking you knowyou we if if we could just accept carsshould be able to go at Max 60 M an hourand also should be small and light theycould be so much cheaper you know somuch cheaper 70 would be fine I’mtalking about cars meant for driving inthe city in the city you know we’retalking errands day-to-day stuff I likegoing fast though then you can’t be inthe city it’s a city car 60 M hour inthe cities well maybe on like an inurban Highway you know labor rights inChina aren’t great though yeah I knowthat all I’m saying is that like likethe reason why cars are getting moreexpensive is in large part becausethey’re trying to find excuses to sellyou more expensive cars and it’s easierto sell you more expensive cars whenmodern American cars all look like thisyou know yeah no it’s moreexpensive to design something thatweighs literally like five times as muchas this thing you know and is also meantto go Zoom fast like and like all thatlike yeah of course you’reoverdesigning it the average person whohas a car like this rarely takes itabove 40 or 5050 mph never goesoff-roading like people don’t off-roadwith cars like this why would they andnever hauls anything it’s bad at haulingtoo we’re overdesigning all thesevehicles this is also so much uglierthan the Chinese car right this is cuteTeslaplans for the affordable Tesla have beenseen as key to delivering on musk’sstratospheric Ambitions for sales growthmusk said that in 2020 Tesla aspired by2030 to sell 20 M million Vehicles twiceas many as the world’s largest automakerToyota sells todayand then he worked on the Cyber truckthe extremely expensive Nichevehicle that isn’t even painted andrusts immediately that he only made likehow many of two he made two yeah exactlySkynet that’s true to an extent Kowalskifrom Nebraska though if the subsidiesare going towards cute little beep beepcars like that that’s a hell of a lotmore defensible than what we have goingon today I know this doesn’t seem like ahuge deal but like man canceling thisproject what

what does Tesla have going for it you know the Cyber truck has beendriving hype for years now and then itcomes out and nobody cares and theybarely make any of it and it’s and you hear complains about it every daythe next project the next big thing wasmeant to be this uh more broadlyaccessible vehicle and they’re just notdoing it uh but just to be reminded ofhow rational and efficient our Market isTesla’s market capitalization of545 billion is higher than

the combined worth of the next three most valuablecar makers Toyota Porsche and Mercedes-Benz even though Toyota Porscheand Mercedes-Benz all produce vastly more more vehicles and service more people than Tesla does love the stockmarket oh they have had a big loss evenwith how irrationally the market treatsTesla it’s been uh it’s been decliningfor quite a bit since its peak back in2022 still highly overvalued likemassively massively overvalued what whatwhat happened in January 62023 not 2020 uh that led to them having this much of a dip what was this againdidn’t Elon like do a thing I forgetexactly been on the down for a while though it was Elon being a Nazi yeahprobably that’s when they banned theauto driving maybe I’m not sure four wheeels bad three wheels good uh it’slittle Batmobile thing I don’t know Elonstraight upet at one point the stock was overvalued and it tanked he’s so smartcan this be a pro EV Community now lookthe the most ecologically efficient caris the one that’s already been made butyou you little Hogs you little you’re going to buy a new car when youget the chance to anyway and if ifyou’re going to get a new car yeah Irecommend getting you know uh anelectric vehicle whatever I just don’tthink there a systemic solution to anyof the problems any of the problems we’re talking about here have you seenthe Nissan Saro we did the last time wetalked about cars delightful little vehicle what’s the cheapest car you canget today in America that’s currentlyselling cheapest cars modern in Americayou know like what like just on the linehere cheapest new cars for 2024 optimIED value let’s see Mazda 3 uh25,000 Honda Civic Subaru impresa ToyotaCorolla Volkswagen Jetta Hyundai ElantraNissan Sentra kiaforte Fort Vos callingall of us problematic when he’s goingout there to get one of the biggesttrucks and saying it’s for his pet Pro