By mid-2025, Tesla intends to start producing new electric cars

By mid-2025, Tesla intends to start producing new electric cars

By mid-2025, Tesla intends to start producing new electric cars

Elon Musk, the CEO of Tesla, has long piqued interest among investors and enthusiasts for reasonably priced electric cars and self-driving robotaxis, which are anticipated to be constructed on a more economical, next-generation electric car platform.

Four persons with knowledge of the situation say that Tesla has informed suppliers that it plans to start producing a new mass-market electric car code-named "Redwood" in the middle of 2025. Two of these individuals have said that the model is a small crossover. has been explained.

Elon Musk, the CEO of Tesla, has long piqued interest among investors and enthusiasts for reasonably priced electric cars and self-driving robotaxis, which are anticipated to be constructed on a more economical, next-generation electric car platform.

These models, which include a $25,000 entry-level vehicle, will enable it to compete with less expensive gasoline-powered vehicles and an increasing number of reasonably priced EVs produced by China's BYD.

In the last quarter of 2023, BYD surpassed Tesla to take the #1 spot among EV manufacturers worldwide.

After first pledging to produce a $25,000 vehicle in 2020, Musk abandoned and then resurrected the idea. The Model 3 sedan, which is now Tesla's most economical option, starts at $38,990 in the US.

Musk expressed worry last year about how rising loan rates would affect the market for expensive goods like vehicles among consumers.

According to two sources, Tesla anticipated a weekly manufacturing output of 10,000 cars when it sent out a "request for quotations" or invitation for ideas for the "Redwood" model to subcontractors last year.

Production is scheduled to start in June 2025, according to three sources. Due to the secret nature of the subject, everyone talked on condition of anonymity.

An inquiry for comment from Tesla was not answered.

One of the most popular queries from investors ahead of Tesla's quarterly results announcement on Wednesday afternoon was when the company will release its next generation of tiny cars. 2024 deliveries are expected to climb by 21% above the company's long-term yearly objective. It's not that much. Approximately three years ago, Musk had established a 50% threshold.

In May, Musk said that Tesla was developing two new products that might together sell five million cars annually. At Tesla's annual shareholder meeting, he said, "The manufacturing technology as well as product design are far and above above anything else that the currently in the industry."

Based on the same vehicle design, Tesla intends to produce an entry-level, $25,000 electric car and a cheap robotaxi, according to Walter Isaacson's biography of Musk, which was published in September and included interviews with the CEO and executives.

Musk said in 2022 that Tesla would produce a specialized self-driving cab with a futuristic appearance in 2024, after many failures to reach the objective of fully autonomous driving.

In March of last year, he and other Tesla officials announced intentions to slash the price of next-generation cars in half, but they did not specify when they would go on sale.

Honda Civic Research

While Tesla has a history of reaching its price and launch goals, growing volume will take some time.

For instance, the Cybertruck's manufacturing has slowed down and been delayed, and its beginning price of US$60,990 is 50% higher than what Musk had said in 2019.

They have launched most of their new products with undue optimism. It is more probable that volume production will begin in 2026, according to one of the sources.

Elon Musk said last year that Tesla's Texas facility will be the first to produce the entry-level model.

Making a profit on inexpensive EVs will be tough due to the expense of batteries and the ongoing challenges associated with producing high-quality, affordable cars.

According to two different reports, Tesla purchased the Honda Civic in order to investigate producing less expensive vehicles. The Honda Civic is priced at $23,950 in the US.

According to two of the sources and one of the first, the next-generation Tesla architecture, internally dubbed "NV9X," would come in two or more versions.

As previously reported by sources, Tesla intends to create a plant in India to manufacture less priced electric cars in addition to producing inexpensive vehicles at its facility close to Berlin.

The EV manufacturer also has operations in Fremont, California, and Shanghai.