[Rumor Risk Rating]
⚠️ Insufficient Evidence
**Rumor Check:**
The claim that “some senior Tesla executives were alarmed last year when Elon Musk denied a Reuters report that the company had killed a planned all-new $25,000 EV” is widely reported by reputable sources such as Reuters and CGTN, citing anonymous insiders and internal communications[1][2][5]. Multiple accounts confirm that Musk publicly denied the Reuters story after it was published on April 5, 2024, but sources indicate he had already internally confirmed the project’s cancellation to executives, leading to internal confusion and concern. However, neither Tesla nor Musk has made an explicit, official public statement confirming the project’s termination, so the final status remains unclear and subject to change[2][5]. While the events and the internal reactions are credible based on multiple insider reports, the absence of official confirmation keeps the rumor status at “Insufficient Evidence” for a definitive conclusion.
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Here are the three most relevant business/financial news articles on this topic from recent days:
1. [Title] Tesla executives were alarmed by Musk’s denial of low-cost EV cancellation—Reuters
[Content] Tesla executives were reportedly alarmed when Elon Musk publicly denied a Reuters report about the cancellation of the $25,000 EV project, despite being aware that Musk had internally confirmed its cancellation. The company’s stock dropped by 6% before recovering to close down 3.6% on the day of the denial.
[Date] 2025-06-02
[Source] https://www.investing.com/news/company-news/tesla-executives-were-alarmed-by-musks-denial-of-lowcost-ev-cancellationreuters-4075044
2. [Title] Tesla $25K EV Canceled? Focus Shifts Towards Affordable Model 3
[Content] Tesla has reportedly moved away from its long-anticipated $25,000 EV, prioritizing more affordable versions of the Model 3 and Model Y. The Reuters report highlights internal debate among executives and uncertainty about the company’s direction, as Elon Musk denied the project’s cancellation despite having told executives the project was “still dead.”
[Date] 2025-06-02
[Source] https://evxl.co/2025/06/02/tesla-25k-cancellation/
3. [Title] Tesla executives questioned Musk after he denied killing $25,000 EV project, sources say
[Content] Senior Tesla executives questioned Elon Musk after his public denial of the $25,000 EV project’s cancellation, with sources stating that Musk had already informed staff the project was over weeks earlier. The episode led to confusion within Tesla’s leadership about the company’s strategic direction.
[Date] 2025-06-02
[Source] https://news.cgtn.com/news/2025-06-02/Tesla-executives-questioned-Musk-over-25K-EV-denial-sources-say-1DSIkWheXQs/p.html