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Tesla, the industry leader in electric vehicles, has informed its suppliers of plans to launch a new mass-market model, internally dubbed “Redwood”<\/strong>, from mid-2025. Sources close to the matter described the vehicle as a compact crossover.<\/p>\n <\/p>\n Tesla CEO Elon Musk<\/strong> regularly promotes his vision of more affordable electric vehicles built on a low-cost platform. These models, including a $25,000<\/strong> entry-level car, aim to compete with cheaper gasoline-powered cars and affordable options from rival manufacturers.<\/p>\n <\/p>\n These include Chinese automaker BYD<\/a>, which recently dethroned Tesla as the world’s leading electric vehicle manufacturer in the final quarter of 2023.<\/p>\n <\/p>\n Musk, who had pledged to produce a car in this price range in 2020, has relaunched this project after a pause. Currently, Tesla’s lowest-priced Model 3<\/strong> sedan has a starting price of $38,990<\/strong> in the US.<\/p>\n <\/p>\n Tesla reportedly solicited “requests for quotations” from suppliers last year for the “Redwood” model, aiming for production at a rate of 10,000 units per week<\/strong>. Industrialization of the vehicle is scheduled to begin in June 2025<\/strong>.<\/p>\n <\/p>\n <\/p>\n Furthermore, in May 2023<\/strong>, the dynamic CEO announced that Tesla was working on the development of two new products, with a combined sales potential of 5 million vehicles<\/strong> per year. According to Musk’s biography published in September by Walter Isaacson<\/strong>, the brand plans to produce an affordable autonomous cab and a $25,000<\/strong> entry-level electric car, based on the same vehicle architecture called “NV9X”.<\/p>\n <\/p>\n “Product design and manufacturing techniques far exceed anything in the industry,”<\/em> he had told shareholders at a general meeting.<\/p>\n <\/p>\n Already in 2022<\/strong>, Musk had announced that Tesla would launch a futuristically designed self-driving cab in 2024<\/strong>, despite repeatedly missing his target of achieving full self-driving capability. Furthermore, in March 2023, Musk and other Tesla executives unveiled plans to halve the cost of next-generation vehicles, although no launch schedule was specified at the time.<\/p>\n <\/p>\n <\/p>\n Tesla, despite its ambitions, often struggles to meet launch and price targets. Production of the Cybertruck<\/strong> model, for example, has been delayed and slow to ramp up, with a starting price of $60,990<\/strong> 50% higher than Musk had announced in 2019. “They’ve been overly optimistic on most of their new product launches. Volume production is more likely to start in 2026,”<\/em> said one of the sources.<\/p>\n <\/p>\n Musk said last year that the affordable model would initially be built at Tesla’s Texas<\/strong> factory. However, the Redwood’s launch schedule is raising questions among investors, as the market expects delivery growth to be less ambitious than Musk announced. Analysts predict difficulties in making low-cost electric vehicles profitable, given battery costs and traditional production challenges.<\/p>\n <\/p>\n However, the American automaker could strengthen its market position with the launch of the Redwood in 2025. This project marks a new stage in Tesla’s quest to offer affordable, competitive electric vehicles. Rumors have it that the automaker plans to manufacture some of its new vehicles at the Berlin<\/strong> plant, or even set up a new facility in India<\/strong>.<\/p>\n <\/p>\n [\/arm_restrict_content]New vehicles and NV9X platform<\/h2>\n
Anticipated challenges<\/h2>\n
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