Tesla plans to Build Brand-New Electric Vehicles in Mid-2025

Published On: 24 January 2024
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Tesla is working on a brand-new EV car which is anticipated to launch in mid-2025 as a compact crossover version.

Tesla has informed its dealerships that it will soon be commencing the production process of a new bulk electric vehicle badged as “Redwood” in mid of 2025, as per 4 people thoroughly in conformation with the concerned matter, with 2 of them describing this new EV as a compact crossover.

Elon Musk, the CEO of Tesla, has piqued the interest of investors and enthusiasts for low-cost electric cars and self-driving robotaxis, which are anticipated to be produced on next-generation, less expensive electric car platforms.

These models, which would include a USD25,000 entry-level vehicle, would enable it to compete with increasingly affordable EVs like those produced by China's BYD as well as less expensive gasoline-powered vehicles.

In the last quarter of 2023, BYD surpassed Tesla as the leading EV manufacturer globally.

Musk had earlier declared that he would produce a car for USD25,000. He later put it on hold and then resurrected this plan. The starting price of Tesla's most affordable model, the Model 3 sedan, is USD38,990 in the US.

Musk expressed concern last year about how high interest rates would affect consumer demand for expensive goods like cars.

Two of the sources said that last year, Tesla issued "requests for quotes," or invitations for bids, to suppliers for the "Redwood" model, with a projected weekly production volume of 10,000 cars.

Three sources stated that June 2025 would mark the start of production. Due to the confidential nature of the subject, everyone spoke on condition of anonymity.

An inquiry for comment from Tesla was not answered.

One of the most popular questions investors asked Tesla ahead of its quarterly results report on Wednesday afternoon was when the company would release its next generation of compact cars. The company is expected to predict a 21% increase in 2024 deliveries, which is significantly less than the long-term yearly target of 50% that Musk set approximately three years ago.

Musk also confirmed that in May the company was working on two new products, with the potential for combined sales of 5 million vehicles a year. “Both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in the industry,” he commented at the annual shareholder meeting of Tesla.

Based on the same vehicle architecture, Tesla intends to produce an affordable robotaxi and an entry-level electric car priced at USD25,000. This information comes from interviews with the CEO and executives in Walter Isaacson's biography of Elon Musk, which was published in September.

Musk stated in 2022 that, following multiple failures to reach complete self-driving capability, Tesla would create a specialized self-driving taxi with a futuristic appearance in 2024.

He and other Tesla executives announced plans in March of last year to cut the price of the company's next-generation cars in half, but they did not specify when they would go on sale.

Tesla has a history of missing its price and launch targets, and increasing volume would take time.

For example, Cybertruck production has been slow to start and has been delayed. Its starting price in the United States is USD60,990, which is 50% more than what Musk claimed in 2019.

“They have been overly optimistic on most of their new product launches. Volume output is more likely to begin in 2026,” one of the sources said.

Musk stated last year that Tesla's Texas factory would be the first to produce the entry-level model.

It will be difficult to turn a profit on the less expensive EVs considering the cost of batteries and the ongoing challenges in building high-quality, low-cost cars.

According to two different sources, Tesla disassembled a Honda Civic, which retails for USD23,950 in the US, in order to learn how to produce automobiles at a lower cost.

The two individuals as well as one of the first sources claimed that two or more models will be part of the next generation Tesla architecture, internally dubbed "NV9X."

According to earlier reports, Tesla is interested in establishing a manufacturing facility in the country to produce less expensive electric cars, and it also intends to build less expensive cars at its factory near Berlin.

The manufacturer of EVs also operates factories in Fremont, California, and Shanghai.