[Rumor Risk Rating]
✅ True
Multiple credible sources confirm that some senior Tesla executives were indeed alarmed when Elon Musk publicly denied a Reuters report stating Tesla had canceled its planned all-new $25,000 EV. According to these reports, Musk posted on X (formerly Twitter) on April 5, 2024, calling the Reuters story false shortly after it was published, a move that helped stop a sharp decline in Tesla’s stock price. However, sources familiar with the situation and internal company documents indicate executives were aware the project—long informally referred to as the Model 2—had already been canceled and that Tesla had shifted focus to autonomous robotaxis instead[1][3][5].
Internally, this public denial reportedly caused confusion and concern among senior managers, as the company had already told some employees weeks earlier that the project was over. The conflicting public and internal messaging led to debates and uncertainty among Tesla’s leadership about the company’s direction and communication strategy[1][2][5].
Thus, the claim that senior Tesla executives were alarmed by Musk’s denial of the low-cost EV cancellation is well supported by multiple reputable sources and corroborated by firsthand accounts[1][3][5].