Benzinga - by Anan Ashraf, Benzinga Editor.
Elon Musk-led Tesla Inc (NASDAQ:TSLA) is reportedly considering the production of a new mass-market electric vehicle with the codename “Redwood.”
What Happened: Production of the new EV is expected to commence in mid-2025, and the vehicle is said to be a compact crossover, Reuters reported, citing people familiar with the matter.
It was not immediately clear if “Redwood” was the car with a potential price point of $25,000 that many analysts and Tesla fans have long anticipated.
As reported by Reuters, two distinct sources revealed that Tesla has, in recent years, dismantled a Honda Civic — a vehicle with a starting price of $23,950 in the U.S. — as part of a study on techniques to produce more cost-effective cars. The report further suggests that the upcoming Tesla architecture, internally referred to as “NV9X,” is set to include two or more models.
In December, Musk confirmed in a YouTube interview that Tesla is concurrently developing a more affordable car, expected to be made in high volume.
Current Lineup: Tesla’s current lineup includes the Model S, a luxury sedan with high performance; the Model 3, a more affordable and practical sedan; the Model X, an SUV featuring distinctive falcon-wing doors; and the Model Y, a compact SUV sharing a platform with the Model 3.
Additionally, Tesla has introduced the Cybertruck, an all-electric pickup truck with a unique design, with its highest-priced variant reaching around $100,000.
Why It Matters: During Tesla's annual shareholder meeting in May, Musk said that the company is working on two new products, a proper product launch for which shall be held at a later date.
"Both the design and manufacturing techniques are head and shoulders above anything that is present in the industry," Musk said.
The CEO added that Tesla would probably make 5 million units of these products, combined, in a year.
Tesla is currently facing increased competition, particularly from China’s BYD. In the last quarter, BYD trumped Tesla as the world's largest EV maker, selling more battery electric vehicles than Tesla.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read More: ‘We’re Not Stuck In A Mold:’ Cybertruck Designer Credits Tesla CEO Elon Musk As Driving Force To ‘Bring The Future Forward’
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