### Tesla's $25,000 EV Project: Internal Turmoil Following Musk's Denial In a significant internal conflict at Tesla, senior executives expressed alarm after CEO Elon Musk publicly denied a report regarding the cancellation of a planned low-cost electric vehicle (EV) priced at $25,000. This project, which was anticipated to drive substantial sales growth, has become a point of contention within the company. Musk's denial has raised concerns among executives about the company's strategic direction and investor relations, particularly as it contradicts internal decisions made prior to his public statement. The situation has led to speculation about potential scrutiny from regulatory bodies like the SEC due to the implications of misleading investors. ### Breakdown of the Situation: Key Segments 1. **Musk's Denial and Its Implications** - Elon Musk dismissed a 2024 report claiming that Tesla had canceled the development of the $25,000 EV, which was expected to significantly boost sales [https://www.rt.com/business/618520-musk-tesla-executives-electric-vehicle]. 2. **Executive Concerns** - Senior Tesla executives were alarmed by Musk's denial, questioning whether he had reversed the company's decision to halt the project, which had been internally scrapped weeks prior to his public statement [https://www.theglobeandmail.com/business/international-business/article-musks-denial-that-tesla-cancelled-low-cost-electric-vehicle-alarmed]. 3. **Investor Reactions and Regulatory Risks** - The denial has sparked concerns about potential SEC scrutiny and investor confusion, as it may mislead stakeholders regarding Tesla's future product strategy [https://www.newsbytesapp.com/news/business/tesla-executives-alarmed-when-musk-denied-cancellation-of-25-000-ev/story]. 4. **Strategic Shifts within Tesla** - Insiders revealed that the decision to cancel the project was made internally, contradicting Musk's public claims, which has led to questions about the company's overall strategic direction [https://www.devdiscourse.com/article/technology/3444033-teslas-25000-ev-turmoil-internal-conflicts-and-strategic-shifts]. ### Supporting Evidence and Data - **Key Dates and Events:** - **2024:** Internal decision to cancel the $25,000 EV project. - **June 2, 2025:** Musk publicly denies the cancellation, leading to executive alarm. - **Potential Impact:** - The $25,000 EV was expected to drive explosive vehicle sales growth, making its cancellation a significant strategic misstep for Tesla [https://www.timeslive.co.za/motoring/news/2025-06-02-tesla-executives-questioned-musk-after-denial-of-25000-ev-project]. ### Conclusion: Summary of Findings 1. **Musk's Public Denial Contradicts Internal Decisions** - Musk's denial of the cancellation of the $25,000 EV project has created internal discord among Tesla executives, who were already aware of the project's termination. 2. **Concerns Over Investor Relations** - The situation raises serious concerns about how Musk's statements may mislead investors, potentially leading to regulatory scrutiny from the SEC. 3. **Strategic Implications for Tesla** - The conflicting narratives within Tesla highlight a need for clearer communication and alignment on product strategy, as the company navigates its future in the competitive EV market. In summary, the internal conflict at Tesla regarding the $25,000 EV project underscores the challenges of leadership communication and strategic alignment within a rapidly evolving industry [https://www.ndtv.com/world-news/tesla-facing-backlash-as-executives-question-musk-about-cancelling-the-25-000-ev-project-8569360].