Tesla: Media Report Says Affordable Vehicle Will Be Canceled

On April 5, Tesla shares fell as much as 6% during the day on a Reuters article stating Tesla will cancel its plans to build an affordable vehicle, instead using the same small vehicle platform to build robotaxis. On Tesla's prior earnings call, management said it aimed for the affordable vehicle to enter production by the end of 2025 and hailed the vehicle as the driver of the next phase of growth for Tesla. Less than an hour after the article was published, Tesla CEO Elon Musk disputed Reuters' claim in a post on the social media platform X, formerly known as Twitter. After Musk's post, Tesla shares rallied and were down just over 3% at the time of writing.