Tesla has paused development of the more budget-friendly Model 2 car to prioritize their robotaxi project.

CEO Elon Musk publicly refuted a Reuters report about the halting of the Model 2, labeling the information as inaccurate.

The company is advancing its self-driving technology and aims to reveal a new robotaxi on August 8, 2024.

Despite not proceeding with the Model 2, Tesla continues to pursue new market opportunities and strives for consistent profitability.

Tesla is investing heavily in the Full Self-Driving system, with its latest version having achieved over one billion miles of autonomous driving.

The unveiling of the robotaxi later in the year marks a significant step in Tesla's strategy, though the long-term effects on the brand are yet to be determined.