American electric automaker Tesla apparently plans to build a new electric vehicle model, codenamed “Redwood,” in mid-2025, Reuters reports, citing four people familiar with the matter.
Report highlights
According to the report’s sources, Tesla informed its suppliers about its plans to start producing a new mass-market electric vehicle.
Interestingly, they suggest that the Redwood model will be a compact electric crossover.
Tesla reportedly sent “requests for quotes” of bid invitations for the Redwoon EV to suppliers in 2023. Two of the sources further claimed that Tesla expects to hit a weekly production rate of 10,000 units for the model.
In addition, three sources of the report revealed that Tesla plans to start producing the Redwood model in June 2025.
However, the sources requested to stay anonymous due to the confidentiality of the matter.
Tesla’s push to launch low-cost models
Tesla Chief Executive Elon Musk has been promising its fans and investors that the American automaker will soon launch affordable electric vehicle models and autonomous robotaxis by integrating its next-gen platform, “NV9X.”
It includes the highly-awaited $25,000 Tesla car, enabling the Musk-led company to challenge its gas-powered counterparts and low-cost EV rivals.
As of now, Tesla’s most affordable offering is the all-electric Model 3 sedan. It has a base price of $38,990 in the US market.
Tesla’s efforts in developing new lower-price models are part of the company’s mission to make electric vehicles more affordable and accessible to a wide range of customers.
Significance
Tesla’s planned next-gen compact models were among the prevailing concerns of its investors ahead of its quarterly report on Wednesday afternoon.
Tesla is reportedly expected to release a forecast of a 21% increase in its deliveries this year. However, it falls short of Tesla CEO Musk’s 50% long-term annual target, which he announced three years ago.
In May, the Tesla boss said the company was developing two new models with a potential combined annual sales of 5 million units.
“Both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in the industry.”
Tesla CEO Elon Musk
Tesla’s upcoming mass-market models will play a significant role in the company’s target to reach 20 million electric vehicle sales by 2030. However, it would be challenging for the Musk-led automaker to profit from cheaper models, considering the high costs of batteries.
