Reportedly Abandoning Model 2 and Announcing Musk's Full Bet on Autonomous Driving for Unmanned Taxi? Reuters suddenly revealed that Tesla is canceling production of the long awaited entry-level model Model 2 and instead focusing on developing the Robotaxi for autonomous driving. Musk denied this report on Twitter, but immediately announced the release time of Robotaxi. Analysis suggests that Tesla's entry-level models are no longer able to compete with China's low-cost electric vehicles, so autonomous driving is a story that better supports Tesla's long-term prospects.