2025 Tesla Redwood | If it has any significance at all, the “Redwood” name almost certainly alludes to the potentially huge sales figures the new EV could generate, rather than its size. Insiders described the new model to Reuters as a compact crossover, which suggests it is in fact the hotly-anticipated $25k entry-level Tesla.

Tesla procured quotes for the “Redwood” project last year from suppliers when it suggested that weekly production volumes could reach 10,000 units. That’s half a million cars per year, which would make a huge difference to the company’s overall output. Last year Tesla’s production grew by 35 percent to 1.85 million, but in May of 2023, CEO Elon Musk said he was working on two new products that could together have the potential to generate 5 million sales per year.

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