Ousted Tesla cofounder says a canceled $25,000 car could give China 'a chance to really spread'

• Tesla cofounder Martin Eberhard expressed disappointment over a report of Tesla canceling its $25,000 EV plans.

• Elon Musk dismissed the report, but has acknowledged pressure from China.

• Eberhard's said China stands to benefit if Tesla scrapped its plan for a low-cost EV.

Tesla cofounder Martin Eberhard said a report that the electric-car maker has canceled a $25,000 EV could give China a boost.

Eberhard said the decision would be a "shame," during a speaking engagement at the HSBC Global Investment Summit in Hong Kong on Tuesday, according to a report from Reuters.

Elon Musk has spent years promoting the automaker's plans for a low-cost EV.

But last week, Reuters reported that Tesla had given up on its plans to build a $25,000 car, citing three sources familiar with the project and internal messages. Shortly after the report was released Musk wrote on X that "Reuters is lying (again)." The billionaire also said Tesla plans to unveil its first robotaxi later this year.

"We've both read in the news, Tesla delaying or eliminating their low-end Model 2 program, which is a shame for them, but it's a sign that China has a chance to really spread there," Eberhard said, according to Reuters.