Tesla ($TSLA (+0.05%) ) has reportedly announced its plans for a low-cost car and will instead focus on the development of self-driving robotaxis on the same platform for small cars.

According to 3 sources from Reuters ($TRI ), Tesla has canceled the long-announced cars to promote growth of the company. The decision was reportedly announced in late February at a meeting with numerous employees.

One of the 3 sources confirmed the cancellation and said that new plans include robotaxis in much smaller quantities than originally planned for the Model 2 planned.

Elon Musk, however, said of that Reuters message just now: "Reuters is lying."