The Electric: Has Elon Musk Lost his Nerve?

In 2006, the auto industry ridiculed Tesla CEO Elon Musk when he said that over the next few years, he would mass-produce three models of electric vehicles, including a midpriced car. In 2013, with two of those promised EVs in production and the third on the way, Musk drew a new round of skepticism when he doubled down and said he also intended to build a “gigafactory” for batteries, with capacity equal to the total of every then-existing battery factory in the world. Musk said he was certain consumers would have almost insatiable demand for his cars. As anyone who has not been living on a desert island knows, he proved spectacularly right: Today, every traditional automaker is trying to catch up to Tesla.  

But as we enter 2024, Musk’s EV strategy seems timid by comparison. If he were sticking with his playbook, Tesla would arguably be lining up deliveries of the industry’s next big thing—an EV priced at $25,000 or cheaper to attract the majority of cautious buyers not swayed by what’s cool or new. Instead, Musk—who proposed just such a car in 2020—has deflected questions on when Tesla will release one. Meanwhile Stellantis—hardly on the cutting edge of EVs—will debut the Citroen ë-C3 hatchback early next year at 23,300 euros ($25,500), or 18,300 euros ($20,500) with the EU subsidy.