Tesla to build new, affordable models in 2025

  • Tesla plans mid-2025 production for a new mass-market electric vehicle, “Redwood.”
  • Redwood, a compact crossover, aims to compete with affordable gasoline and electric cars.
  • Challenges and global ambitions, including potential manufacturing in Berlin and India, add complexity to Tesla’s expansion.

Tesla plans the “Redwood”, a new, affordable EV coming in 2025

Sources reveal that Tesla is in the preliminary production stages of a new mass-market electric vehicle (EV), codenamed “Redwood”. Production is slated for mid-2025, with the overall pursuit of making EV s more accessible to the general public.

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Described as a compact crossover, the Redwood model will compete with more economical gasoline-powered cars, as well as the increasing number of budget-friendly EVs. This comes as a direct response to the market’s increasingly affordable models such as those produced by BYD. This move comes in line with the company’s commitment to delivering a $25,000 car. That promise was initially made in 2020 and later revisited.

Insiders report that Tesla has reached out to suppliers, sending out “requests for quotes” for the Redwood model. This indicates a projected weekly production volume of 10,000 vehicles. The scheduled production in June 2025 is a focal point for the manufacturer as it expands its product lineup.

However, Tesla’s track record of setting ambitious targets and encountering delays raises questions about the feasibility of the proposed timeline. Investors are keenly awaiting details about Tesla’s next-generation compact vehicles. Expectations are for an official announcement during the upcoming quarterly results report.

Beyond the Redwood project, Tesla is simultaneously working on other fronts.

The company’s current projects include the development of an affordable robotaxi and an entry-level $25,000 electric car. Both of these projects are built on the same vehicle architecture. Musk has projected a potential combined sales volume of 5 million vehicles annually.

Yet, challenges loom large. Profitability remains a concern, given the inherent costs associated with battery production and the historical difficulty of manufacturing high-quality yet cost-effective vehicles. Tesla’s strategy involves dissecting established models, like the Honda Civic, to glean insights into cost-effective vehicle production.

Tesla’s global ambitions are evident. While the Redwood model is initially slated for production in Texas, there are plans to manufacture cheaper cars at the Berlin factory. Furthermore, there are indications of interest in establishing a factory in India, underscoring Tesla’s vision of making electric vehicles more accessible on a global scale. As Tesla continues to shape the landscape of sustainable transportation, the upcoming developments are poised to leave a lasting impact on the industry.

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