Former Tesla CEO Slams Elon Musk's Reported Decision To Scrap Cheaper Car Project: 'That's A Shame, They Might Want To Rethink'
Portfolio Pulse from Benzinga Neuro
Martin Eberhard, Tesla Inc.'s co-founder and former CEO, criticized the company's decision to cancel the Model 2 project, aimed at creating an affordable EV. He highlighted the importance of affordable EVs in competing with Chinese models, particularly BYD Co.'s lineup, and stressed the need for cost-focused strategies in the EV market. Despite rumors of the project's cancellation, Tesla's chief designer hinted at ongoing development, amidst Tesla facing intense competition from BYD, which overtook Tesla as the world's largest battery EV manufacturer.
April 09, 2024 | 9:50 am
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NEUTRAL IMPACT
Martin Eberhard's criticism of Tesla's decision to scrap the affordable Model 2 project could impact investor sentiment, especially given the importance of affordable EVs in competing with Chinese manufacturers like BYD.
The news reflects internal concerns about Tesla's strategic direction, particularly in the affordable EV segment. While the criticism from a co-founder could influence investor perception, the impact on the stock price is uncertain due to Tesla's strong brand and market position. The mention of ongoing development despite rumors of cancellation adds complexity to the situation.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80