It is reported that Tesla has dismissed an internal analysis suggesting that the company's robotaxis might not be financially viable. According to the failed report, it was recommended to invest resources instead in the development of a more affordable 25,000-dollar electric vehicle (often referred to as Model 2).

Internal Study and Recommendation

Tesla executives like Daniel Ho, Drew Baglino, Rohan Patel, Lars Moravy, and Franz von Holzhausen have reportedly advocated for the affordable model according to the industry portal The Information. The internal evaluation showed that robotaxis could initially generate sales revenues of around 20,000 to 25,000 US dollars, but fare commissions would earn three times that amount over their lifetime. However, this conclusion significantly differed from Elon Musk’s public forecasts, which projected values between 100,000 and 200,000 US dollars.

Market and Regulatory Risks

The study also warned that a shrinking US car market due to increased use of robotaxis could make it more difficult for Tesla to sell its new cars. Additionally, there are regulatory hurdles that would complicate the international expansion of the robotaxi program.

Decision Against the Robotaxi Program

Despite being aware of these risks, Elon Musk has approved the Cybercab project while halting the development of the 25,000-dollar vehicle, according to internal documents. Thus, Tesla continues to focus on the autonomous taxi, even though the internal analysis expressed doubts about its economic viability.