Tesla has long been a trendsetter in the electric vehicle industry, and its CEO Elon Musk isn’t one to shy away from risky bets. However, it appears the Tesla execs are pulling back the reins, nudging Musk towards a more balanced approach.

Elon Musk wanted to launch a Robotaxi with fully autonomous driving

Elon Musk’s initial vision was a Robotaxi that screams “future” — a fully autonomous vehicle, void of any traditional driving amenities like a steering wheel or pedals. Musk was gunning for a high-stakes game, envisioning a Robotaxi that could potentially make Tesla a “ten-trillion company.” But not everyone on Tesla’s team was sold on the idea. Chief designer Franz von Holzhausen, among others, advocated for a Plan B: a more affordable electric car based on the same technology platform.

Tesla Model 3

The concerns were rational. The execs argued that Full Self-Driving (FSD) tech might either not be ready or face legal roadblocks internationally. They also pointed out a compelling market for an affordable electric car, aligning with Tesla’s long-term goal of scaling production significantly. As a result, Tesla is now walking on two roads: developing both the Robotaxi and an affordable electric car. The designs for both vehicles, unveiled to Musk in February 2023, have the futuristic Cybertruck vibe that Musk is so fond of.

Yet, questions abound. Is Tesla stretching itself too thin by pursuing two divergent visions simultaneously? Additionally, initial plans for a new gigafactory in Mexico have been scrapped. High-ranking engineers were reluctant to relocate to Mexico, leading Tesla to shift its base of next-gen EV operations to Austin, Texas.

In summary, Tesla seems to be hedging its bets, working on two game-changing vehicles. While this could offer a safety net, it also poses the risk of diluting focus and resources. Only time will tell if this dual-path approach will pay off or if it’s an overly ambitious gambit. But one thing is clear: when these cars roll out, they’ll look like “something from the future,” as Musk enthusiastically noted. And perhaps that’s the goal—creating the future, but with a safety net.

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