After a series of delays, Tesla initiated assembly of its distinctive Cybertruck late last autumn. However, reports indicate that the Texas-based company is already gearing up for its next venture. According to Reuters, Tesla has informed suppliers of its intention to commence production of a new vehicle by mid-2025, tentatively named “Redwood.”
Citing insights from four individuals familiar with Tesla’s plans, Reuters reveals that two anonymous sources have confirmed the Redwood as a compact crossover.
Speculation about Tesla’s development of an entry-level car has circulated for several years, with Elon Musk initially alluding to such a vehicle at an event in 2020. Musk envisioned a price point of $25,000, complete with fully autonomous driving capabilities, aiming for a launch within three years.
Although Musk momentarily scaled back the car’s development in 2022, he reignited interest in December 2023. Reuters reports that Tesla issued invitations to suppliers to bid for the Redwood last year, with an anticipated weekly production volume of 10,000 units.
Production is slated to commence in June 2025, as per the sources. “They have been overly optimistic on most of their new product launches. Volume output is more likely to begin in 2026,” one source cautioned, as quoted by Reuters.
While the Redwood is anticipated to fulfill Musk’s vision of an affordable vehicle, analysts speculate that its price may start closer to $30,000 upon release, considering the current mid-$40K entry point for the Model Y.
Two Reuters sources suggest that Tesla has dissected a Honda Civic “to study how to make cheaper cars.” Musk previously announced plans for the new model to be manufactured at Tesla’s Austin, Texas factory in 2023.
The Redwood is expected to share its platform with a dedicated robotaxi, a project long envisioned by Musk but yet to materialize. Musk had initially projected production of the autonomous taxi by 2024; however, it is likely to follow the commencement of Redwood production.
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