Tesla has subtly hinted at its plans to
commence production of a new, mass-market electric vehicle codenamed
"Redwood" in mid-2025. According to sources familiar with the matter,
two of them have described the upcoming model as a compact crossover, marking
Tesla's entry into the more affordable segment of the electric vehicle (EV) market.
Tesla CEO Elon Musk, renowned for his
ambitious goals, has been teasing the prospect of affordable electric vehicles
and self-driving robotaxis. These new models, including an entry-level car
priced at $25,000, are expected to position Tesla competitively against
traditional petrol-powered cars and the increasing number of affordable EVs,
particularly those produced by China's BYD. Notably, BYD overtook Tesla as the
world's top EV maker in the final quarter of 2023.
Musk's vision for an entry-level $25,000
car has been in the spotlight since 2020. The recent revelation suggests that
Tesla is reviving and potentially realizing this plan, with the Model 3 sedan
currently serving as Tesla's most affordable offering, starting at $38,990 in
the US.
Last year, Tesla sent out "requests
for quotes" to suppliers for the "Redwood" model, with an
ambitious forecast of weekly production volume reaching 10,000 vehicles. The
production is anticipated to kick off in June 2025, marking a significant
milestone for Tesla's expansion into the mass-market EV segment.
Despite Tesla's history of missing
launch targets and facing challenges in meeting pricing goals, Musk remains
confident about the forthcoming models. Musk, in May, mentioned that Tesla is
working on two new products with the potential for a combined sales volume of
five million vehicles per year. He emphasized that the design and manufacturing
techniques for these products surpass anything else in the industry.
