Tesla plans to introduce new mass-market EVs codenamed 'Redwood' in 2025

Elon Musk first vowed to introduce $25,000 model back in 2020 as part of a plan he later deferred and resumed
The image displays a Tesla vehicle. — Unsplash
The image displays a Tesla vehicle. — Unsplash

Tesla, the leading EV maker, is aiming to initiate the production of new mass-market electric vehicles codenamed "Redwood" by mid-2025.

According to the sources familiar with the matter, the design of the upcoming fleet of vehicles will imitate compact crossover. These affordable and autonomous models of EVs, which EV enthusiasts have long expected from Elon Musk, will be manufactured on cost-effective EV-making platforms.

The vehicles, to be produced under the Redwood umbrella, will be challenging contenders in the face of affordable vehicles, both gasoline-powered and electric, currently battling to mark a substantial footprint in the auto sector.

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Among the planned vehicle lineup of Tesla, the most affordable, entry-level model will cost $25,000, allowing it to counter the widespread popularity of inexpensive EVs made by China's BYD that snatched the title of top EV maker from Tesla during the fourth quarter of 2024.

According to Reuters, the Tesla boss first vowed to introduce the $25,000 model back in 2020 as part of a plan he later deferred and resumed.

The company last year urged suppliers to quote their bids to produce "Redwood" vehicles, with plans to manufacture 10,000 units on a weekly basis once the production starts in 2025.

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Last year, Musk announced that the affordable model would be initially produced at Tesla's factory in Texas. In May, Musk also mentioned that Tesla was developing two new products, which could potentially generate a combined sales volume of 5 million vehicles annually.

He emphasised that both the design of the products and the manufacturing techniques were superior to anything else in the industry during Tesla's annual shareholder meeting.

According to Walter Isaacson's biography of Musk, released in September and based on interviews with the CEO and executives, Tesla is planning to introduce a low-cost robotaxi and a $25,000 entry-level electric car using the same vehicle architecture.

In order to create more affordable cars, Tesla studied the Honda Civic, which has a starting price of $23,950 in the US, in recent years. The upcoming Tesla architecture, internally referred to as "NV9X," will consist of two or more models.