[Rumor Risk Rating]
✅ True
The claim that Tesla executives were alarmed by Elon Musk’s public denial of the cancellation of Tesla’s planned $25,000 electric vehicle (often called “Model 2”) appears to be true based on the available evidence.
According to multiple reliable sources, Tesla executives were indeed concerned when Musk publicly denied a Reuters report about the cancellation of the $25,000 EV project. On April 5, 2024, Musk posted “Reuters is lying” on X (formerly Twitter) in response to Reuters’ initial report about the project’s cancellation[1][2]. This denial came despite executives knowing that Musk had actually canceled the low-cost vehicle project weeks earlier[5].
The executives’ alarm stemmed from the fact that they were aware the project had indeed been canceled, contrary to Musk’s public statement[1]. Internally, Musk reportedly confirmed to executives that “the project was still dead,” causing confusion among senior managers who questioned why he had changed his stance publicly[2].
This situation created internal debates among Tesla executives and raised questions about the company’s direction in the competitive EV market[2]. The discrepancy between internal knowledge and public statements appears to have triggered concerns, with some reports suggesting it may have also raised SEC concerns[3].
Tesla’s stock dropped 6% immediately following the Reuters report on April 5, 2024, partially recovered after Musk’s denial, but still closed down 3.6% that day[1][2]. The company had reportedly pivoted to focus on self-driving robotaxis instead of the low-cost EV, and had already informed employees that the project was over weeks before Musk’s public denial[5].