Robotaxi
Tesla’s Robotaxi Pricing Confusion Deepens During Earnings Call
In a series of conflicting statements during Tesla’s recent earnings call, CEO Elon Musk provided contradictory information about the pricing of the company’s upcoming Robotaxi vehicle, raising questions about the actual cost and timeline of Tesla’s more affordable vehicle plans.
Price Point Confusion
The confusion began earlier this month when Tesla announced its Robotaxi would have a $30,000 base price. However, during the earnings call, Musk clarified that this figure would be “sub 30k with incentive” – suggesting a significantly higher actual base price of potentially $37,499 before federal tax credits. This revelation indicates the vehicle may not be substantially more affordable than previous Tesla models, as the company’s Model 3 was briefly available for $35,000 and more recently started at $38,990 before incentives.
Adding to the uncertainty, Musk later contradicted his own statement within the same earnings call, claiming the Robotaxi would cost “on the order of constructively 25k” and that “it is a 25k car.” He did not specify whether this new figure included incentives.
Key Statements from the Earnings Call
Tesla’s messaging became increasingly muddled throughout the call. When addressing the company’s affordable vehicle plans, Tesla’s official response stated:
“As Elon and Vaibhav both said, it’s our plan to meet that in the first half of next year. Our mission has always been to lower the cost of our vehicles to increase the adoption of sustainable energy and transport. Part of that is lowering the cost for current vehicles. The next stage in that fits into our AI roadmap which is when we bring in Robotaxi which lowers the initial cost of getting into an EV.”
Musk immediately followed this with: “It’ll be like, with incentive, sub 30k. Which is kind of a key threshold.”
Later in the same call, when questioned about a potential $25,000 non-Robotaxi model, Musk dismissed the idea entirely, stating that “having a regular 25k model is pointless.” However, he then pivoted back to the Robotaxi, contradicting his earlier pricing statement: “it’ll cost on the order of constructively 25k. So it is a 25k car. And you will be able to buy one exclusively if you want.”
Product Roadmap Uncertainty
The pricing confusion extends to Tesla’s broader product strategy. When questioned about the company’s plans for more affordable models next year, Tesla’s response encompassed multiple possibilities:
- A Model Y refresh
- An unannounced new model
- The Robotaxi launch
However, industry observers largely doubt the Robotaxi’s projected launch timeline, noting that Tesla’s autonomous driving capabilities still face significant development hurdles.
Incentives Dependency
The reliance on government incentives for achieving these price points presents another layer of complexity. Notably, Musk has publicly supported political initiatives that could potentially end the very EV incentives his pricing strategy appears to depend on.
Pattern of Shifting Numbers
This wasn’t the only instance of rapidly changing figures during recent Tesla communications. During the 2024 shareholder meeting, Musk’s valuation of the Optimus robot project fluctuated dramatically. He initially suggested the robots could be worth $20 trillion to Tesla’s market cap, only to revise this figure to $25 trillion minutes later – a $5 trillion increase larger than any company’s total historical value.
Analysis
The rapid shifts in pricing statements, sometimes within minutes of each other, suggest a potential disconnect between Tesla’s public messaging and its actual product planning. This pattern of changing numbers has become increasingly noticeable in Tesla’s communications, affecting not just product pricing but also release dates and performance metrics.
Industry analysts note that while Tesla has previously announced ambitious pricing targets that proved difficult to achieve, the company now appears to be adjusting these targets in real-time during public communications, potentially indicating a new level of uncertainty in its product strategy and pricing models.