Tesla plans to start production of affordable Redwood electric vehicles in 2025

Tesla has informed suppliers that it wants to start production of a new electric vehicle for the mass market in June 2025, writes Reuters with reference to informed sources.

According to the agency’s interlocutors, the new car is codenamed Redwood. Some of them describe the future Tesla electric car as a compact crossover. The company expects to produce 10 thousand cars every week.

Elon Musk, the automaker’s CEO, has long whetted the appetites of fans and investors for affordable electric cars and unmanned robot taxis. They are expected to be built on cheaper next-generation platforms.

These models, including an entry-level car costing $25 thousand, will allow Tesla to compete with cheaper gasoline-powered cars.

It’s also a chance to compete with the growing number of cheaper electric vehicles, in particular the Chinese company BYD. The latter is known to have overtaken Tesla as the world’s leading electric vehicle manufacturer in the fourth quarter of 2023.

Elon Musk first promised to create a car worth $25 thousand back in 2020. Later, the billionaire postponed this plan for a year, and then returned to it again.

At present, Tesla’s cheapest offer, the Model 3 sedan, has a starting price of $38 990 thousand in the United States.