Elon Musk Says Tesla Is Not Currently Working On The $25,000 Compact Car — Here's Why

Tesla Inc TSLA CEO Elon Musk said on Wednesday the electric vehicle maker is currently not working on a more affordable vehicle.

What Happened: Musk told investors in a post earnings call that Tesla may at some point consider working on the $25,000 electric vehicle but has too much on its plate currently.

“We’re not currently working on the $25,000 car,” Musk said. “At some point we will. We have enough on our plate right now. Too much on our plate, frankly.”

The Tesla CEO said the asking about the progress of the $25,000 car was "sort of the wrong question" and, instead, what "overwhelmingly" matters is "when is the car autonomous?" 

See Also: Elon Musk Confident Tesla Will 'Achieve' FSD This Year — Provides Product Updates On Cybertruck, Optimus, Bot And More

Why It Matters: Musk told investors 2021 was a breakthrough year for Tesla and it expects to grow by more than 50% this year despite supply chain problems.

Tesla is on path to add significant capacity this year when two of its recently finished Gigafactories —Texas and Berlin — come online. The Austin, Texas-based Tesla currently has a facility in California and in Shanghai.

Some analysts have estimated Tesla could easily deliver up to 1.5 million vehicles this year.

Price Action: Tesla shares closed 2.07% higher at $937.4 a share on Wednesday and were down 0.8% in after hours trading.

See Also: This Metric Will Be The Street's Focus With Tesla For 2022: Wedbush

Photo: Courtesy of Nvidia Corp. via Flickr

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