09:34 AM EDT, 06/02/2025 (MT Newswires) -- Tesla (TSLA) Chief Executive Elon Musk's denial last year of a Reuters report about the cancellation of a planned $25,000 electric vehicle drew concerns from some senior executives, Reuters reported Monday, citing sources with knowledge of the matter.

The report said there was confusion after Musk posted on X, "Reuters is lying," shortly after Reuters reported in April last year that Tesla had quietly scrapped development of the low-cost model known as Model 2 and shifted focus to autonomous robotaxis.

Some senior managers asked Musk whether he had reversed course and Musk reportedly said the project was still dead, Reuters said. Some executives were not concerned, citing Tesla's history of keeping plans flexible, according to Reuters.

Tesla published an investor update weeks later, saying it still planned "new vehicles, including more affordable models," Reuters said.

A year later, however, Tesla has not released the Model 2 low-cost EV, which Musk previously touted as a breakthrough in affordable electric transportation, Reuters added.

Instead, Tesla is now developing stripped-down versions of the Model 3 and Model Y. The vehicles, initially expected in early 2025, have been delayed and pricing details remain undisclosed, according to the report.

Tesla did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)