Musk-Owned Tesla Likely To Launch Mass-Oriented EV in Mid 2025
Elon Musk-owned Tesla is all set to launch a new electric vehicle (EV), with the codename “Redwood,”. The renowned EV manufacturer will have this new vehicle in mid-2025. According to sources, the groundbreaking announcement of the company came at a time when the company, Tesla was aiming its expansion in the market. Another major aim of the car manufacturing giant is to make electric vehicles more accessible to the general public.
According to reports from Reuters, individuals familiar with the matter and development of the “Redwood” said, this model is described as a compact crossover, signaling Tesla’s strategic move to start their strong venturing into the automated market. This expansion aligns with Tesla CEO Elon Musk’s vision to develop affordable self-driving robot taxis, to masses which will be dedicated to the next generation, automatic vehicles.
The introduction of the “Redwood” model marks Tesla’s efforts to compete with less expensive gasoline-powered vehicles and the growing market of affordable EVs. China’s BYD, which surpassed Tesla as the world’s leading EV maker in the final quarter of 2023, serves as a key competitor in this space.
Elon Musk had pledged to develop a $25,000 car in 2020, a plan that was momentarily shelved but later revived. The current entry-level option from Tesla, the Model 3 sedan, starts at $38,990 in the United States, highlighting the company’s commitment to offering more affordable EV options to consumers.
In preparation for producing the “Redwood” model, Tesla initiated the procurement process by sending out “requests for quotes” to suppliers last year. Sources close to the project revealed that Tesla projected a weekly production volume of 10,000 vehicles, underscoring the company’s ambitious goals for the new model.
Production of the “Redwood” model is scheduled to commence in June 2025, as confirmed by three sources familiar with the project. The announcement has already generated significant interest among investors, with shares of Tesla (NASDAQ: TSLA) rising by 1.69% in pre-market trading on Wednesday morning.
With the launch of the “Redwood” model, Tesla aims to strenthen further its position as a leader in the electric vehicle market while allowing access to sustainable transportation options for consumers worldwide.
