Report: Tesla Set to Manufacture Next-Generation Electric Vehicle, Code-Named “Redwood,” by Mid-2025

Despite being a leading electric vehicle manufacturer, Tesla still lacks a car that can compete in the affordable segment. Both the Model 3 sedan and Model Y crossover are considered premium vehicles. However, recent reports from sources familiar with the matter suggest that Tesla is planning to start production of its next-generation platform, codenamed “Redwood,” in mid-2025.

Interestingly, the upcoming vehicle is described as a compact crossover by some of the sources. It is said that Tesla reached out to its suppliers last year for quotes on the “Redwood” model. Expectations for production volumes are set at around 10,000 per week, which may be feasible due to expected innovations in Tesla’s next-generation platform. In the past, Tesla has even disassembled a Honda Civic to study how to manufacture more affordable cars, although it should be noted that the Civic is produced in a more conventional manner.

The upcoming affordable Tesla is expected to have a starting price of about $25,000. This vehicle was mentioned in Walter Isaacson’s biography of CEO Elon Musk, where it was stated that it would be built alongside a dedicated robotaxi designed for autonomous ride-hailing services. Musk himself expressed enthusiasm for the upcoming affordable Teslas, claiming that they will have industry-leading design and manufacturing innovations.

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