Tesla is reportedly working on a new model that is set to be its smallest and most affordable yet when it releases in mid-2025, according to a new report.
Reuters says that the American carmaker told suppliers that it’s gearing up to launch a new EV which currently goes by the codename ‘Redwood’.
Two of the suppliers described the vehicle as a compact crossover in terms of size, and it’ll supposedly be a part of Tesla’s next-generation of models that will drive a “new wave of growth” for the company.
“In 2024, our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas,” Tesla said in a report.
We’re unsure whether the ‘Redwood’ project is related to the affordable Tesla CEO Elon Musk announced back in 2020 which he said would cost around $25k in the United States, or $41k in our money.
If it is, its competitive price point would not only enable it to compete with a range of petrol-powered models such as the Toyota Yaris Cross Hybrid and Volkswagen T-Cross, but also the likes of BYD which overtook Tesla to become the world’s leading EV maker at the end of 2023.
Production of the new affordable Tesla is slated for June 2025, but that’s about all we can say until more details make it out of the woodwork.