New 2025 Tesla Redwood - Elon Musk's Secret Project!

Tesla is gearing up to revolutionize the electric vehicle market once again. The company has informed suppliers of plans to start producing a new mass-market electric vehicle, codenamed "Redwood," by mid-2025. This new model, described by insiders as a compact crossover, will begin production at Tesla's Texas factory in the latter half of 2025, with subsequent manufacturing in Mexico and another global location to be determined.

Elon Musk has long promised affordable electric vehicles, including a self-driving robotaxi and a $25,000 entry-level car, to compete with both gasoline-powered cars and affordable EVs from companies like China's BYD. BYD recently surpassed Tesla as the world's leading EV manufacturer in late 2023. Tesla's next-generation vehicle is expected to spur a new wave of growth, even as the company anticipates a slower vehicle volume growth rate in 2024 compared to 2023.

Musk first pledged to build a $25,000 car in 2020, but the plan was put on hold and later revived. Currently, the most affordable Tesla, the Model 3 sedan, starts at $38,990 in the United States. High interest rates have been a concern for Musk, affecting consumer demand for expensive items like cars.

Tesla sent out bids for the "Redwood" model to suppliers last year, projecting a weekly production volume of 10,000 vehicles, with production set to commence in June 2025. Investors were keen on the timing of this next-generation compact vehicle, a question heavily voted on ahead of Tesla's recent quarterly results report. Despite forecasting a 21% rise in 2024 deliveries, this is below the long-term annual growth target of 50% Musk set three years ago.

In May, Musk announced that Tesla was working on two new products with a potential combined sales volume of 5 million vehicles per year. He emphasized that the design and manufacturing techniques of these new products would surpass anything currently in the industry. Tesla aims to produce an inexpensive robotaxi and a $25,000 electric car on the same vehicle architecture, as detailed in Walter Isaacson's recent biography of Musk.

In 2022, Musk said Tesla would create a dedicated self-driving taxi with a futuristic design, following several setbacks in achieving full self-driving capability. Earlier this year, Tesla executives outlined plans to halve the cost of next-generation vehicles, although no specific launch timeframe was given.

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