Tesla will reveal a robotaxi on August 8, says Elon Musk

Tesla will reveal more information about its long-promised robotaxi on August 8, according to CEO Elon Musk. The annoucement came on the same day Reuters published a report claiming Tesla had canceled development on Project Redwood, an effort by the automaker to build an affordable $25,000 electric vehicle. Hours after accusing the wire service of «lying (again),» Musk took to X at 4:49pm ET to share the news. «Tesla robotaxi unveil on 8/8,» he said.

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Despite recent reports, Elon Musk insists that Project Redwood, Tesla's effort to build its most affordable EV yet, is still on track.

Musk did not state what part of the report was inaccurate, but Reuters, citing three sources «familiar with the matter,» in addition to a message seen by its reporters, said Tesla had decided to abandon work on a low-cost EV in favor of a more forward-looking robotaxi, and that the project would use the same small-vehicle platform Tesla had been working for its Redwood crossover.

As recently as January, Musk told investors Tesla could deliver a more affordable electric car, dubbed the Model 2 by the company's fans, as early as the second half of 2025. However, in a meeting Tesla leadership reportedly held in late February, executives shared news of the cancellation with employees. «Elon’s directive is to go all in on robotaxi,» one source told Reuters.

«The Master Plan»

Back when Musk first confirmed plans for a mass-market EV, it was thought the $25,000 EV would, based on the assumption that Tesla could eventually figure out how to make a fully self-driving car a reality, eventually serve as the base for the company's robotaxi platform. As The Verge points out, Musk has long hinted that creating a fleet of robotaxi is part of his long-term vision for Tesla.

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«You will also be able to add your car to the Tesla shared fleet just by tapping a button on the Tesla phone app and have it generate income for you while you’re at work or on