New electric vehicles from Tesla are set to hit the market in mid-2025, with a mass-market model codenamed “Redwood,” according to reports. The new model described as a compact crossover, aligns with Tesla’s mission to offer more affordable electric cars and self-driving capabilities.
Tesla CEO Elon Musk has been vocal about the company’s ambition to provide budget-friendly electric vehicles and self-driving robotaxis using next-gen, cost-effective electric car platforms. This includes the highly anticipated entry-level $25,000 electric car, which would compete with gasoline-powered vehicles and affordable electric cars, such as those produced by China’s BYD.
The production of the “Redwood” is scheduled to commence in June 2025, according to sources. Tesla has yet to comment on this development.
Investors have been eagerly awaiting information about the timing of Tesla’s next-generation compact vehicles, as it is expected to be a key topic in the company’s upcoming quarterly results report. Tesla is anticipated to forecast a 21% increase in deliveries for 2024, a figure well below Musk’s long-term annual target of 50% set three years ago.
Musk had previously announced that Tesla was working on two new electric vehicles with a combined potential sales volume of 5 million vehicles per year. These products were praised for their advanced design and manufacturing techniques.
“They have been overly optimistic on most of their new product launches. Volume output is more likely to begin in 2026,” one of the sources said.
Although Tesla laid out plans to halve the cost of its next-gen vehicles last March, the company has a track record of missing launch targets and pricing estimates, often taking longer than expected to ramp up production. For instance, Cybertruck production has faced delays, with a starting price in the United States that is 50% higher than initially projected in 2019.
Image Source: The Street
