The long-rumored affordable, entry-level Tesla is almost here – maybe. Four years after the automaker first said it would build a cheaper EV, it appears things are in motion. Tesla reportedly alerted suppliers that it would start building a mass-market compact crossover in the middle of 2025, which would become one of the most affordable electric models on sale if it becomes a reality.
The $25,000 vehicle, named “Redwood,” will reportedly have a 10,000-unit weekly production volume and is expected to start rolling through the factory in mid-2025. Chinese company BYD recently overtook Tesla as the top EV company in the world, so this cheaper model could help the American automaker regain its top spot.
Last year, CEO Elon Musk hinted at two new products, aiming for combined sales of five million units annually. One of them is expected to be a robotaxi, which would join the affordable Redwood on a new Tesla architecture.
Tesla has not yet met its goals of delivering affordable EV models, though the Model 3 is one of the least expensive on sale today. The Cybertruck landed at a higher price than initially advertised, and it took several years to release, so the automaker’s track record with new product releases and pricing isn’t the best.
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