Tesla Inc. has informed suppliers of its intention to start producing a new mass-market electric vehicle, codenamed "Redwood," by mid-2025. This move aligns with CEO Elon Musk's vision of creating affordable electric vehicles and self-driving robotaxis. The new model, likely a compact crossover, is poised to compete with lower-priced gasoline cars and inexpensive electric vehicles, such as those from BYD, which recently overtook Tesla as the world's top EV maker.
Tesla's strategy includes an entry-level car priced around $25,000, a significant reduction from its current cheapest model, the Model 3 sedan, priced at $38,990 in the U.S. The production of "Redwood" is projected to reach a volume of 10,000 vehicles per week, starting in June 2025.
Musk's plan involves leveraging next-generation electric car platforms to make Tesla's offerings more competitive and accessible. Despite previous delays and challenges in meeting launch targets and pricing, Tesla's exploration into more affordable EVs could potentially transform the automotive industry and broaden the reach of electric vehicles.