Reuters recently revealed that, despite Musk’s claims to the contrary, the project had indeed been scrapped weeks before he made the statement.

The confusion began in April 2024, when Reuters reported the long-anticipated Tesla model, often referred to as the "Model 2" by the public, had been shelved. Following this report, Musk swiftly countered with a tweet accusing Reuters of fabricating the story. However, according to new information released by Reuters, Musk was fully aware that the report was accurate, sending ripples of uncertainty through the ranks of Tesla’s leadership.

Executives at Tesla were particularly concerned by Musk’s denial, as some speculated whether the project might have resumed. Others feared that customers might hesitate to buy existing models, anticipating the release of a more affordable alternative that would never materialize. Further alarm stemmed from an existing agreement Musk had with the SEC, necessitating legal oversight of his social media communications after past incidents of misleading information.

Musk's tactics did have a short-term financial benefit; his denial halted a decline in Tesla's stock price, which had been down 6% on the day of his tweet. The stock subsequently recovered some lost ground by the day’s end. However, given the misleading nature of his remark and its significant impact on the market, this could be seen as another breach of Musk's settlement with the SEC.

This incident fits a broader pattern in Musk’s behavior, involving frequent clashes with media and regulators. He has previously expressed strong disdain for media coverage he perceives as unfavorable, leading to public disputes and attempts to discredit journalists and reports. For instance, he once suggested a website to rank media trustworthiness named "Pravduh," following critical articles about Tesla.

In recent history, Musk and the Tesla board have also denied reports from the Wall Street Journal about seeking his replacement as CEO, branding their publication as ethically irresponsible. Tesla's dissolution of its PR department years ago complicates these interactions, as journalists no longer have a clear outlet to secure comments from the company.

Notably, Musk's prickly relationship with the media also extends to Electrek. After Electrek criticized Tesla for charging customers $1,500 for pre-installed hardware upgrades, Tesla reduced the charge following widespread media pickup of the story. However, Musk responded by blocking Electrek's accounts on Twitter and barring them from future Tesla events.

As these events unfold, the implications for Tesla remain uncertain, but Musk’s contentious relationship with media and regulatory bodies continues to be a significant and controversial aspect of his leadership.