Tesla scrambles to avoid EV market 'rabbit hole' as problems mount

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Electric Vehicles,Autonomous Vehicles,Automakers

Reported plans to scrap a cheap model have put the EV maker on the defensive.

Share on linkedin Photo illustration: Shoshana Gordon/Axios. Photo: Hannibal Hanschke-Pool/Getty Images, so here's a little more chatter rolling in while everyone waits for more clarity.is still the world's leading EV seller, albeit one that's facing multiple challenges.

Plus, its decisions are a rough guide on how the firm sees competition from Chinese low-cost EV makers.CEO Elon Musk is indeed shelving plans for a cheap electric vehicle model., Deutsche calls it plausible the "Model 2" is pushed to the back burner, given the challenges of ramping up battery capacity and competition from China at even lower prices.is its AI and software advantages. That "would avoid going down the rabbit hole of bruising global competition for the cheapest EV.

Pointing to a new shiny thing may be a way to divert attention from Tesla's recent rough patch, Denning argues.that were lower than even Wall Street's downgraded guesses.Emmanuel Rosner and colleagues suggest that a focus on the robotaxi, at the expense of a Model 2, makes Tesla a riskier bet. Leaving the company with no new consumer models in the foreseeable future would put continued downward pressure on its volume and pricing for many more years., the investment adviser and Tesla shareholder, note regulatory and tech risks with autonomy.

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