“There’s nothing I hate more than this, but it has to be done,” Elon Musk said on erektrek. “This will allow us to be lean, innovative and eager to enter the next phase of our growth cycle.”
Tesla also reportedly abandoned plans to produce an affordable Model 2 priced around $25,000 to focus on new robotaxis. It comes as the company faces a one-two punch from weakening demand and more affordable electric vehicles from Chinese manufacturers. Last year, Tesla ceded its title as the world’s largest electric vehicle manufacturer to China’s BYD, which produced 3.02 million electric vehicles, compared with Tesla’s 1.81 million electric vehicles.