Tesla has informed its suppliers about its intention to commence production of a new mass-market electric vehicle, codenamed “Redwood,” by mid-2025. This model aligns with Tesla CEO Elon Musk’s longstanding vision for affordable electric vehicles and self-driving robot axis. The company aims to compete with cheaper gasoline-powered cars and the increasing number of budget-friendly electric vehicles, exemplified by China’s BYD, which surpassed Tesla as the world’s top EV maker in the final quarter of 2023.
Elon Musk had initially promised a $25,000 car in 2020, a plan that underwent revisions but has resurfaced. Tesla’s recent invitations for bids on the “Redwood” model forecast a weekly production volume of 10,000 vehicles, with production set to commence in June 2025.
The company’s strategy appears focused on introducing next-generation, cost-effective electric vehicles. Musk’s commitment to reducing the cost of next-gen vehicles was outlined in March, with plans for an affordable robotaxi and an entry-level $25,000 electric car sharing the same architecture.
However, skeptics suggest that Tesla’s historical track record of missing launch targets and pricing projections may delay significant volume output until 2026. Nonetheless, Tesla remains committed to exploring production facilities in various locations, including Texas, Berlin, and potentially India, as it continues its quest for producing more affordable electric cars while addressing the challenges associated with battery costs and manufacturing quality inexpensive vehicles.
