Tesla has thrown the idea of a budget electric car into the "trash"

Tesla has cancelled plans for a low-cost electric car that investors were counting on, as it is having problems in the Chinese market.

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Representatives of the company said that they will refocus their efforts on the development of self-driving taxis, given the fierce competition from Chinese electric vehicle manufacturers, in particular, BYD.

Tesla's cheapest current model, the Model 3 sedan, is sold in the US for about $39,000. It was expected that a conventional budget model would cost about $25,000. Elon Musk has often stressed that an affordable car is the company's main task, but now the company is focusing on creating a sophisticated self-driving taxi.

Recently, Tesla has been facing intense pressure from competitors, especially from Chinese manufacturers who are bringing extremely cheap electric vehicles to the market. The Chinese are flooding the market with electric cars starting at $10,000, not without government support.

Source: Reuters