In mid-2025, Tesla Plans To Build New Electric Vehicles

(CTN News) – Four sources familiar with the matter say Tesla plans to start mass production of a compact crossover called “Redwood” in mid-2025.

CEO Elon Musk plans to make its next-generation EV in Texas in 2025. He said Mexico would follow, and another factory outside North America will be decided later this year.

Musk has long piqued fans and investors’ appetites for affordable electric cars and self-driving robots. Those models and EVs like those made by China’s BYD make it competitive with gasoline-powered cars.

In 2023, BYD will overtake as the world’s top EV maker. On Wednesday, Tesla said its next-generation vehicle would spark a new wave of growth.

As our teams work on the next-generation vehicle at Gigafactory Texas, we may see our vehicle volume growth rate fall in 2024,” Tesla said in its quarterly report. Musk promised a $25,000 car in 2020, but shelved and then revived it.

$38,990 is the starting price for Tesla’s Model 3 sedan in the U.S.

Earlier this year, Musk said he was worried about high interest rates. Tesla sent “requests for quotes” for the “Redwood” model last year, and forecast 10,000 cars a week.

It is expected that production will begin in June 2025, according to three sources. Since the matter is confidential, all spoke anonymously.

Tesla is expected to show a 21% increase in 2024 deliveries, well below Musk’s three-year goal of 50%, in its quarterly results report on Wednesday afternoon.

The company is developing two new products with a combined potential of 5 million vehicles a year, Musk said in May. According to him, both Tesla’s design and manufacturing techniques are unmatched in the industry.

Based on the same vehicle architecture, Tesla plans to make an entry-level electric car priced at $25,000 and an inexpensive robotaxi, according to Walter Isaacson’s biography of Musk.

After several failures, Musk announced Tesla would make a self-driving taxi by 2024 in 2022. The company’s executives outlined plans last March to halve the cost of their next-generation vehicles.

Taking a closer look at a Honda Civic

Tesla has a history of missing launch and pricing targets, and building volume would take time.

The Cybertruck was supposed to start at $60,990 US in 2019, but production has been delayed.

“They have overestimated the performance of most of their new products. Large-scale production will probably begin in 2026,” one source said.

We’ll be sleeping on the line virtually as we prepare to start production by the end of 2025, Musk said on Wednesday.

Making a profit from cheaper EVs will be difficult due to battery costs.

Tesla ripped down a $23,950 Honda Civic to study how to make cheaper vehicles. One of the initial sources and two people say next-generation architecture will include two or more models. Apart from building cheaper cars near Berlin, Tesla plans to build a factory in India.

EV maker also has factories in Fremont, California, and Shanghai.

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