Tesla has decided to cancel its plans for a low-cost electric vehicle, which was anticipated to be a significant move towards making electric cars more accessible to a broader market. The decision comes amid intense competition from Chinese electric vehicle manufacturers, who have been offering cars at very competitive prices, some as low as $10,000.

The scrapped project, sometimes referred to as the Model 2, was expected to be priced around $25,000. Instead, Tesla will focus on developing self-driving robotaxis using the same small-vehicle platform. This shift in strategy represents a departure from Tesla's original mission of providing affordable electric cars for the masses.

The news has led to a drop in Tesla's shares, and it highlights the challenges the company faces in a rapidly evolving and highly competitive market. Elon Musk has responded to the report by stating that "Reuters is lying (again)," without specifying any inaccuracies.