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Tesla has scrapped plans to make an affordable electric vehicle (EV), according to Reuters. CEO Elon Musk said as recently as January that he was “optimistic” the low-cost EV would arrive in the second half of 2025. The automaker will instead reportedly “go all in” on robotaxis, which Musk has described as the future of transportation.

The canceled entry-level EV project — often called “Model 2” — was reportedly codenamed “Redwood.” The automaker had predicted a weekly production volume of 10,000 vehicles, and Musk said, “We’ll be sleeping on the line” to make it a reality. He had previously claimed Tesla was working on two new EV models expected to sell up to five million units annually.

For nearly two decades, the CEO has described his long-term goal as using luxury vehicles to build Tesla’s brand before using those profits to fund budget models. “When someone buys the Tesla Roadster sports car, they are actually helping pay for development of the low cost family car,” Musk wrote in a 2006 “Secret Tesla Motors Master Plan” memo. In the following years, he often echoed those sentiments to customers and investors.

The cancellation would leave the $39,000 and up Model 3 sedan as Tesla’s cheapest vehicle. The scrapped budget model was expected to start at around $25,000.

Reuters’ sources told the outlet they were told about the cancellation in a late February meeting “attended by scores of employees.” The publication says it reviewed internal Tesla messages about the pivot, including one advising staff to hold off on telling suppliers “about program cancellation.” Other messages allegedly told staffers that “suppliers should halt all further activities related to H422/NV91,” referring to the budget model’s external and internal codenames.

Musk posted on X (Twitter) on Friday, “Reuters is lying (again)” in response to the story — without listing any points of contention.

Tesla has its work cut out for it. Not only has EV demand slowed in the US, but competition in China is fierce, with the fast-growing BYD leading the country’s entry-level market. The Chinese automaker said earlier this month that its sales increased 13 percent year over year. Meanwhile, Tesla said on Tuesday that its deliveries dropped eight percent annually while falling 20 percent from the previous quarter.

This article originally appeared on Engadget at https://www.engadget.com/tesla-is-reportedly-focusing-on-robotaxis-over-its-planned-budget-ev-190833687.html?src=rss 

As another week winds to a close, it’s time for Engadget’s roundup of the best deals we spotted this week. There’s no giant sale happening right now, but we still found a few decent discounts on some of our recommended tech, including 40 percent off a year’s subscription to Max’s streaming service, $130 off our favorite Android tablet and a new low price on our top mouse for gaming. If you’ve been considering a foldable phone but have been (understandably) turned off by the high prices, a both Samsung’s Galaxy Z Fold 5 and Google’s Pixel Fold are currently on sale and going for $400 and $500 off, respectively. Here are the best tech deals from this week that you can still get today. 

Follow @EngadgetDeals on Twitter and subscribe to the Engadget Deals newsletter for the latest tech deals and buying advice.

This article originally appeared on Engadget at https://www.engadget.com/annual-max-subscriptions-are-still-40-percent-off-plus-the-rest-of-this-weeks-best-tech-deals-172622166.html?src=rss 

It looks like President Biden’s CHIPS Act is starting to pay off. Samsung is planning on doubling its investment in Texas, according to a report by The Wall Street Journal. This will bring the total investment in the state’s chip-manufacturing sector to $44 billion, as Samsung already spent nearly $20 billion to build a factory back in 2021.

The ambitious expansion will reportedly take the form of a new chip manufacturing facility, a packaging site and a research and development space. It’ll all be located in or near Taylor, Texas, as that’s where the pre-existing semiconductor facility was built. The current manufacturing hub isn’t operational yet, but will begin building “crucial logic chips” later this year. For the geographically challenged, Taylor is around a 40 minute drive from Austin.

If this actually happens, it’ll be a huge win for the Biden administration. One of the main goals of the CHIPS Act, after all, is to lure global chipmakers to build on US soil. To that end, Washington plans on awarding more than $6 billion to Samsung as further incentive to keep things running in the good ole USA.

The CHIPS Act has allowed the federal government to award funding and offer loans to many tech companies to encourage domestic spending. Back in February, the multinational semiconductor company GlobalFoundries received a grant of $1.5 billion to help pay for a major US expansion, in addition to a $1.6 billion loan. It plans on building a new fabrication facility in Malta, New York, which will handle the manufacture of chips for the automotive, aerospace, defense and AI industries.

More recently, Intel received the largest CHIPS grant to date, snagging up to $8.5 billion to continue various US-based operations. The current plan is for Intel to use that money to manufacture plants that make leading-edge semiconductor chips meant for use in AI and other advanced applications. The company’s building two new fabrication facilities in Arizona and two in Ohio. Additionally, it’s going to use the money to modernize two pre-existing fabs in New Mexico and expand one location in Oregon. All told, Intel is going to invest $100 billion in US-based chip manufacturing. The various projects are expected to create 20,000 construction and 10,000 manufacturing jobs.

The Biden administration signed the CHIPS and Science Act into law back in 2022 to foster domestic semiconductor research and manufacturing and to lessen America’s reliance on Chinese suppliers. It sets aside $52 billion in tax credits and funding for firms to expand stateside production.

This article originally appeared on Engadget at https://www.engadget.com/samsung-is-doubling-its-semiconductor-investment-in-texas-to-44-billion-154322399.html?src=rss