Elon Musk Isn't Telling You Something About The 25K Tesla... 

They could do both! Use the vehicle as a RoboTaxi for a few years, then, sell the used vehicle for $10-15k.

He directly disputed it and said they were lying

I'm always very intrigued by your perspective and it's often quite novel. However, there appears to be two problems with what you suggest: first, those two options are not mutually exclusive especially given other markets for FSD is not available yet. Second, they Tesla model y being the best selling vehicle globally disproves the notion that people won't switch to the $25,000 car. There will be unlimited demand for that car and the ramp will be quick. I don't see any of the risks you mentioned.

When Elon first came up with this car it was always ment to be a Robotaxi, but he was talked into making it also a car people can buy for themselves. The Robotaxi does not have a stearing wheel or pedals for brakes and excelerator and does not need any controls as the computer runs everything. In 10 years from now you will not be allowed to drive your car that does not have have full self driving in the city or on a freeway. The only place you will be able to self drive is in the bush/off road. This is what the Robotaxi was desigined for. I want to see the robotaxi. Go Elon Go

I think his plan to produce Robo taxi first is brilliant. When he introduces and produces a Robotaxi on 8/8 he would not be cannibalizing his sales of the model three or model Y because no one can buy a robotaxi. at that point, he would find an amenable city and launch the service in a limited area, say in San Francisco and when he felt like it, he would start producing the model two by adding the appropriate controls if things didn’t work out as well as he wanted to with the Robo taxi makes sense?

It's not hard if Tesla is rational: There is no downside to producing the $25k car as planned. If they cannot produce enough to meet demand, that's a good thing not a bad thing. Skipping it and go straight to Robotaxi would be irresponsible to shareholders and risks a massive drop in share price over the short term. Of course, long term the Robotaxi is going to be great, but the $25k car bridges the time in between. Create as many synergies on platform as possible, launch 25k car in 2025, get robotaxis in 2026 and get them to scale before 2030. That still requires Tesla to fill a 5 year growth gap.

Makes so much more sense to go with robotaxi. Fewer cars would do much more work than just sitting in someone's garage or a parking lot 95% of the time like today.

The limiting factors on a robotaxi would be local approval for autonomous vehicles and customers destroying the interior. Cleaning and maintenance would still be a big cost sink.

Do you know how long it will be before Goverment’s will allow AI self driving cars to be used on the roads without a geo-fenced area and human driver over seeing it. If we’re looking at the Robo taxi as a car that drives itself and the passenger doesn’t need to babysit it then it’s going to be a long time before that’s legal to do without major restrictions. Although, I don’t disagree with the analysis of the martlet, i just don’t see the Robo taxi happening in the next ten years due to regulation. Which this video mentioned nothing about even though that’s the biggest threat to this product.

Robotaxi isn’t going to work in rural areas. The 25k car is still needed.

Believing in what Elon says is like believing the aliens will land in your yard next week and will bring you presents.

This concept, the RoboTaxi, is fine in medium to high density communities. There will quickly develop an adequate inventory of these vehicles to make the concept viable. But not in the rural world. I live in a small town with a population of, as far as I know, just one Tesla M3. There are three charge points, each at a hotel and offering only one or two ports, requiring a vehicle to be connected overnight to obtain a decent charge. I wonder how much local data Tesla has amassed from the far smaller number of their vehicle being driven around our sparsely populated county. I'm sure FSD gets enormous amounts of data in the big cities and their suburban surrounds, but here? I suspect a lot less, so how well can it perform on our often deserted roads? Ever heard the joke: Q. "What's the best off-road vehicle? A: "A rental car". Frankly, I don't want my regular transportation to have been used by the typical cheap rental customer. Having rented thousands of different rental cars over the years from almost exclusively the biggest and best rental companies. Most were clean and well maintained, but some smelled very bad, some had been occupied by little people that spilled sticky drinks and food into challenging places. Worse, I was fortunate to buy a new Cessna 172 back in the '80s. I put it to work on a 'lease back' program where people could rent it from a well respected flying school. Several times it was returned suffering from abuse. I had to ban a couple of people that had rented it more than once as their small children destroyed the interior panels by picking them apart, probably from boredom during a long flight. The renter thought it acceptable treatment for a rental vehicle, despite the replacement parts costing several thousand dollars! Having to clean out puke was not uncommon either. No, no one but immediate family is going to share our vehicles.

Interesting and I can see Elon making that choice, however that doesn’t negate the need for a $25k Tesla. A perfect 3rd vehicle to commute and leave my truck at home to be used when needed for the larger jobs. I don’t foresee robo taxis coming to my neighborhood for me to be able to rely on it as a service. However the $25k Tesla isn’t for the typical $25k car shopper. I would expect a Prius as a better option for them.

Totally disagree…the robotaxi network will take several years to develop so why not sell M2 to the masses until robotaxi network is built out…by then column will be ramping up

With time ICE vehicles will face the same dilemma that some EV owners face today. Gas stations will face a situation where the gas they are holding is not having sufficient inventory turnover and thus reduced cash flow. I already notice that in some gas stations, where multiple pumps are consistently non functioning. That means they don't want to have cash flow tied to excess inventory. Eventually when cashflow does not make sense, they could make a push to an alternate model.

Great video! It will be fascinating to see how much of this will come true

I’ve never bought a pair of shoes that cost more than $100 dollars.

5:16 25 year old Toyota for me. 1999 Tercel, any time I bring it somewhere for work the mechanics are impressed that it starts up the first time every time.

The only thing I have against a car as a service is that it inhibits autonomy, reliability, and accessibility. It requires you to be dependent on someone else for a basic necessity, which is entirely a captive market (in theory) possibly subject to price gouging, and may not be where you want it when you need it. It requires a lot of planning ahead and good faith. I love a 15 minute city because I can walk to a grocery quickly. It becomes an issue when the only affordable grocer is an hour and a half walk away, and there is no transport to get there.

interesting take :O

Apple playbook, when growth slows you start looking for the rent

Also, a robotaxi announcement does not say that it will not include private cars. In fact, a car owned today by private owners will be available for robotaxi use. Now realize this: isnt it better to sell a car with a 40% profit to make your primary investment return and then have it continue to provide extra money every day thereafter rather than put it to work immediately and have it drive 50,000 miles at $0.50 a mile to be in the same position as a sale? But wait! There's more after each ride, or at a minimum a few times a day that robotaxi will have to be inspected and cleaned. There will be the cost of doing that. So up that 50,000 miles a notch.

Sooner or later, we will be saying. “Remember when humans were allowed to drive?”

Perfect explanation.

There’s already a $28k model 3 (with US federal credit).

that is probably the best scenario prediction I have heard on what will actually happen on 8/8 - questions is... will Tesla sell the car to businesses that want to utilize the robotaxi service or will he keep all profits in-house & only offer ride service without any ownership in to the network to outside companies?? I'd love to buy 10-20 robotaxi's units & put them on the network instead of getting back inside my car & driving people around myself...

Well, I was expecting to buy one if those Redwoods. Now, that is just a pipe dream I guess...

Nope, the first robotaxi will be the Teslas that are currently running around. 3:)

You say a used Corolla is safe and mature. I sit in one and can feel the body pan flex. If you peel the fender back, you're likely to find a Lite Beer logo. If you take a corner too hard, the hubcap flies off because the wheels flex. If you get hit in one by anything larger than an NFL linebacker, we'll come to your funeral and say nice things. Unsure? No, "uninformed."

“Robo-Taxi: You’ll own nothing and like it!”🎉

Well this is a deep thought. At least tesla's do not leak oil

Unboxed csr would cost more to assemble,it requires expensive glue and fasteners on the joints

5:12 problem is that as EVs takeover there will be less and less people needing gas stations and eventually they will become so rare that ICE vehicles will begin to have the range anxiety that some EVs have now.

FSD is level 2. It need to be level 4 to be allowed as robotaxi. I am not sure how will Tesla get to higher level particularly when Tesla is focused on vision-based systems and not backup technology like Lider. To Tesla be at level 3 or 4, regulators are hell bent on having all weather backup sensors which Tesla is totally against. For Tesla, It will be a uphill battle of at least 5-10 years .. in order to convince level 3 and 4 can be achieved with vision based neural FSD. Anyone aware f M2 supporting Lidar or ultrasonic sensors apart from cameras?

I think 25k Tesla will be a good car for the indian market. Both the market size and anti china sentiment makes it a promising market for the 25k model. I will wait until Musk announces something during his visit to india this month

Our roads are built for human drivers . Not for robo drivers. Robo drivers should be provided with appropriate infrastructure....

At 58 years old. This is my opinion. It may be dead today. But this is still a new car company, tech company. Whatever anyone tells you keep in mind. The Tesla model S came out in 2013. It’s only 2024. That means the cars only been out for 11 years. Just like General Motors and Toyota motor Corp. killing the electric car. Remember that. There was a documentary about it. Fast forward and we got a Tesla. But the electric car is dead. Anything can happen at any time. I bet in my lifetime I will see that $25,000 car being driven in my neighborhood. But believe what you want. In the 70s they promised us flying cars. Guess what they exist today. Took 50 years but it’s here.

I like your reasoning

Which generates more profit? Selling cheap cars that anyone can can buy and make money putting it to work as a robotaxi? or Producing a robotaxi that is not for public sale, rather deploy fleets of them and make all the robotaxi money for themselves? I’m pretty sus the second option is the plan.

Nobody is going to ride in a Robo Taxi 😏

I believe robo taxi is 2026 onwards unless amazing breakthrough in AI and bureaucratic process. I personally believe robo taxi would just be $25000 model with some interior redesign.

If Tony Seba is correct about battery prices falling drastically, and if we again get the $7500 tax credit on the Model 3, then the ModeI 3 may eventually go down to $25,000, thereby removing the necessity for the next gen $25,000 car.

Awe! Why use a clip of Mark Hamill?... I nearly tossed my lunch!

If you can buy a car but it could host software that works as a robotaxi on it's own then the price of the car doesn't matter that much. You won't be able to buy it. If X good can generate $10,000 a year, and physically costs $25000 to make, the physicals cost of the good is moot. It will be bought for it's profit making potential. Until the risk that car not paying for itself increases, it will be infinitely sold out. Whatever that break even point is - that's the price of the first robotaxi.

Not able to charge at home? Untrue. There *is* av charger one is able to purchase and charge, anywhere, in minimal time-under an hour. Think it’s around 30 minutes, in fact, or less!

Underrated Channel

Awesome video. Can’t say I wouldn’t rather an affordable EV for the masses, but this makes total sense.

You really need to be hired by Tesla's marketing department if they ever create one lol. I used to think Tesla had a stranglehold but with NVIDIA chips competing on the AI front and supplying them to car manufacturers and other companies competing on robo taxis we'll see what Tesla can do.

That nasty old Elon! He can’t take away my driving privileges with autonomous robots

Just WOW.

This video puts forth a good theory, which may be one path Tesla will take. From my perspective, building a $25K car makes no sense with Model 3's selling for about that price or just a little above $30K now. The price for replacement parts and EV batteries would have to decline in price, and Tesla would have to allow 3rd party repair shops more access to repair Tesla's if the $25k car has any chance of success. Moreover, there has to be more education on how EV's work and a vast number of public chargers installed over the next decade to support the potential number of $25K cars that may enter the market. All of the above has to happen so insurance rates drop to a reasonable level of affordability for the $25K consumer. All of the aforementioned happening would build trust in EV's and a high degree of trust is important for someone who has only the income to purchase a $25K car. People who are purchasing EV's now have a little more income to spare in most cases, so they can deal with the challenges of owning an EV at the current time. Plus EV demand is being subsidized by our government with the $7,500 tax credit for now, until EV's can come down in price. Also, while the $7,500 tax credit is available, spare parts, repairs and battery technology must become better and cheaper or EV adoption will take a very long time.

Agree. Most cars will probably be rented not bought soon.

nice video

Shareholder Value. Cheap Chinese cars under 25,000, some well under that price, are not a concept. They are real and will soon be here. Elon is doing the right thing, and hey, if you still want one of those, they will be on the market when they age out. It might even be a better deal. A refurbished Tesla Taxi with a new battery pack for around 15 grand? I'd be willing to look that over.

The 25k is still necessary for Europe and China so it will be offered outside the US.

2:44……how good are the vehicles if you are SLEEPING ON THE LINE?

This a reasonable theory. If you can’t make enough to satisfy demand you need to deliver the service in a more reliable and cheaper way. The flip side of the car as a service is to be able to actually deliver the service globally. Because the service becomes infrastructure with same problems as expanding the public charging. Except now you will need vehicle marshalling yards and central charging for each town you wish to operate in. Then you will likely need induction chargers for each parking space so you can operate with fewer people who would have to plug them in as they return for charging at all hours as well as a team to flatbed the ones driven further than they are able to return.

the robo needs a trunk big enough to hold the Tesla E-Bike

I doubt that FSD and approvals for a robo taxi will be even close by 2025 or 2026... I hope it will but i just don't see the tech being reliable enough soon to get the regulatory approvals or consumer confidence.

Fuck the car is a service if I need a cheap car and I want drive…Tesla will built and sell one…to drive, iam sure of that

The media is full of FUD.

I can’t fill a car up at home, never have been able to, had to go to a petrol station for fuel so its not a big issue to go somewhere to charge

If Robotaxi is available next year/soon in cities, more/double shoplifting?

A car as a service? Sounds a lot like "In the future you will own nothing and be happy".

Tesla robo-taxi service could start today - or even a year ago probably - if Tesla simply started with a model that only hired out if the riders can provide a licensed driver paying attention behind the wheel and able to take control. To be a 'member' you have to take a 20 minute training course. No drunks allowed, no little kids carried to school alone, none of the big risks. It only needs to drive fully autonomously if there's no one at all aboard, which slashes the liability. Sure it's a limited market - that's part of the point! Start small.

If Tesla keeps ownership of the roboTaxi, will they get the $7500 rebate?

I have lived in places where owning a car was not practical. I rode taxis that were always just a few minutes away from being hailed. I could not stand it. I bought a car as unpractical as it was. It took longer to take your own vehicle. That will be the opposite for most people in the USA. They will have to order a vehicle early and possibly still arrive late.

Tesla is developing a lower end trim of the model 3 and Y using new assembly methods. This Trim will be the 25K car which can also be used as a Taxi. It makes no sense for them to design new cars or make a smaller car as it will increase complexity. They will just reuse parts from their other models and make a lower end trim. This trim will look like the model 3 and Y but will have no glass roof and u will bet they will switch to anodized aluminum body (getting rid of the paint)

If it is a service, it is not a 25k car, and Elon should say so. No problem! There's the Renault 5, for example.

I’m all for the robo taxi. I don’t want to own a car.

Elon early on said that they would stop selling even the Model 3 & Y because Tesla would keep them for themselves.

2 is still coming but not until Mexico is online. Elon doesn’t want to Osborne the 3, so he won’t announce 2 until production is ramping

How exactly will a robo taxi that his higher utilization than an individually owned EV require less charging infrastructure?

Not sure I buy the scenario. It will be many years before robotaxis are allowed in many jurisdictions around the world, especially in safety-regulation-heavy places like Europe or bureaucratic-gridlock places like India. Additionally, there will also be pushback from many local stakeholders like local taxi companies and tuktuk drivers. All of this will delay robotaxis. In the meantime, is Tesla going to simply sit and watch potential car sales go to ALL their competitors?

I think it was always dependent on fsd

In Elon we trust

Does Tesla actually have approval for *real* Full Self Driving? I don't think so. W/o full autonomous driving, how is a Tesla Taxis suppose to work?

$25K car sold as a robotaxi to fleets that can be outfitted (through 3rd parties) as the fleet owners prefer. Much like Boeing makes and sells planes (flying taxi's) to carriers who outfit them as they see fit. This way, Tesla makes and sells the taxis but doesn't have to worry about hosing out the vomit after each shift

Tesla can’t announce the $25K car until they have enough batteries and production ready. Once it is announced, model 3 sales are Osborne. Model 2 will cannibalize m3 sales.

So the smallest Tesla becomes a taxi??

Tesla will have to reduce accidents by 100x because the claim amounts will also increase 100x. When suing corporations claim amounts are exceedingly high. 100x reduction is also about where the, very risk adverse, regulators will start feeling comfortable enough to allow autonomous cars outside of geofenced locations, time frames, and reduced speeds.

Yes that its never coming. Where is my Roaster !

Tesla is a KNOWN QUALITY AND QUANTITY.... Others PALE in comparison... End of Ps I'm just one of MILLIONS of middle class potential buyers... And I'm PASSIONATE about buying a Tesla

The more I think about the self driving tesla, def as elon would say it would be best serve for big cities rather than for individuals who can just afford their own vehicles.

I wonder if the $25k will be sold first to get it into more people's hands and get more driving data. Then Robotaxi comes to life when we get true FSD

Most 120$ shoes arent worth their price. Decent shoes start around 40$, there is the jump in quality. The higher the price there is bigger lottery of was it worth the bump.

it will all boils down to fsd capacity. is it safer than human? is it really autonomous? if both are YES and YES, robotaxi will work.

At said investor day Elon blurted out that the $25k car would come with FSD

You are wrong. The best way to get someone to buy a Tesla is to give them a ride in one. If the world's middle class have that experience and know they can afford a new one or used they will convert. Also, two things are coming, charging ports at curbside and wireless charging under parking spots. In those cases there will be a handshake wi y h the charger so the owner pays for the electricity. Also, the life of a rental, taxi, Uber/Lyft is only a few years, so the Robotaxi will be on the used vehicle market rather soon. They will be steer, accelerate and brake by ethernet, so the buyer will only have to add the remote units that bolt on.

I'm torn. As a Tesla fan, I dream of purchasing a Tesla (not currently sold in my country), but as a shareholder, I agree that robo tax means more cash in my pockets.

I tought this channel for elon's follower that always said good things like official ads

Your premise is Nort American based. China , Germany and any other new factory can still build the car for markets that won’t have robo taxi for years

There is no confirmation that the car will not be sold as well as being robotaxi. Franz was asked directly if the car was scrabbed and said don't belive everything you read on the internet

It’s going to take years to get FSD approved in Europe. So there’s a huge market for the smaller Tesla here for at least 5-10 years.

One day not too far away I think Tesla will stop selling cars, sure they'll still build them but they really don't need the sales, especially not now FSD is here!

I’ve owned Honda Accords and Toyota Corollas for decades. I’d love to buy a $25k Tesla, but also see the benefit of a robotaxi. So many youths don’t drive and just Uber these days.

It'd be neat if we could charge remotely from the window. Might be worth the energy loss.

If Tesla doesn't fill the $25k price point someone else will.

Who charges it?

Tesla lost too much time on Elon pet projects like the X and CT. So yes, the timing is maybe not so great anymore to release a 25k car right now except in latin america. I think what plays a role is that strategically Elon has to roll out in India where 25k is still too much for majority of the people. However, you can still provide robotaxis in India at a level that locals can afford in urban areas. The volume will be lower which has positive effect on battery availability and they will have a competing product.