Tesla (NASDAQ: TSLA) stock fell 4% in intraday trading Friday following a Reuters report. However, Elon Musk has refuted the claims made in the article.
Tesla (TSLA) CEO Elon Musk has rebuffed a report by Reuters claiming that the electric vehicle company has scrapped its plans for a low-cost car, sparking a wave of speculation and subsequent market reaction.
The Reuters article, which cited sources and company messages, suggested that Tesla had abandoned its plans for a low-cost vehicle but would focus on developing self-driving robotaxis using the same small-vehicle platform. This development went against investors’ expectations for Tesla to introduce a more affordable model to drive growth.
In response to the report, Elon Musk took to social media platform X (fka Twitter) to denounce the claims, labeling the article false. Replying to a tweet that highlighted the news, Musk wrote,
“Reuters is lying (again).”
Tesla (NASDAQ: TSLA) Stock Reaction
TSLA stock fell over 5% following the publication of the report. However, the stock regained some initial losses on Musk’s rebuttal, closing at $164.90 on Friday.
In January, Musk announced Tesla’s plan to commence production of the affordable model in the second half of 2025, with an expected price of around $25,000.
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