Tesla’s focus on a cheaper electric vehicle has been postponed, with reports indicating a shift towards robotaxis instead.

Following disappointing earnings and a decline in vehicle deliveries, Elon Musk announced plans to unveil robotaxis in August, aiming to boost Tesla’s fortunes.

The company’s Full Self-Driving technology is a key component, although it faces challenges and lawsuits.

Musk’s vision includes removing human controls from vehicles to enable autonomous cab services, despite previous unmet promises, Business Insider reported.

This pivot marks a significant departure from earlier plans for a $25,000 Tesla model. While some reports suggest the cheaper model has been abandoned, Musk denies this.

Analysts caution that focusing on robotaxis may be risky, emphasizing the importance of delivering an affordable electric car, which remains a priority for many consumers.

Written by B.C. Begley