Tesla has communicated to its suppliers its intention to commence production of a new mass-market electric vehicle (EV) known as “Redwood” by mid-2025, according to sources familiar with the matter as reported by Reuters. Described by two of the sources as a compact crossover model, the EV aims to contribute to Tesla’s goal of making electric vehicles more accessible to a broader market.
CEO Elon Musk had initially pledged to produce a $25,000 car in 2020, a plan that underwent shelving and subsequent revival, as highlighted in the report. Last year, Tesla sent out a “request for quotes” to suppliers for the “Redwood” model, with an expected production target of 10,000 units per week, as per two sources cited in the report.
Production is slated to commence in June 2025, with Musk indicating that the affordable model would initially be manufactured at Tesla’s Texas factory. The company had previously undertaken an evaluation process involving the disassembly of a Honda Civic to explore cost-saving measures and enhance the feasibility of producing more budget-friendly cars, according to two sources.
The upcoming Tesla architecture, internally referred to as “NV9X,” is anticipated to feature two or more models, forming the next generation of the company’s electric vehicle lineup, the report states. Additionally, recent reports from a Chinese media outlet suggest that Tesla may be considering restarting the third phase of its Shanghai factory, potentially focusing on the production of the $25,000 models.
While Tesla began preparations for the construction of the Shanghai Phase III auto factory in 2021, progress was paused in mid-2022, according to information from December 6, 2023, as reported by LatePost, citing an insider.
