Tesla, Inc(NASDAQ:TSLA) stock is trading lower Friday following reports of the EV maker dumping its low-cost vehicle plans amid China competition.

According to a Reuters exclusive report, Tesla has canceled production of its much-anticipated affordable car, which veers away from CEO Elon Musk's original mission to create electric vehicles accessible to a broader audience.

This decision dampens hopes for expanding Tesla's market reach and signifies a shift in focus toward developing self-driving robotaxis on the same vehicle platform, the report adds.

Interestingly, Musk challenged the credibility of the report in his latest tweet.