The electric vehicle (EV) landscape is set for a seismic shift in 2025 with the anticipated arrival of Tesla's new compact crossover SUV, internally codenamed 'Redwood'.
This model represents Tesla's push into more affordable EVs, aiming to significantly undercut the price of its current entry-level offering, the Model 3.
Insiders hint at 'Redwood' being the much-awaited US$25,000 (currently around NZ$40,800) budget Tesla model, a crucial element in Tesla's strategy to compete with rising EV producers like China's BYD.
Manufacturing leap
Tesla's CEO Elon Musk has hinted at groundbreaking manufacturing techniques for its upcoming EVs, suggesting that the new production methods will be a game-changer.
Despite the 'Redwood' project experiencing multiple delays since its initial announcement for a 2020 release, recent reports indicate that production is slated to commence in June 2025.
This ambitious undertaking is expected to reach a staggering output of 10,000 vehicles per week.
Global production plans
Tesla's preparation for 'Redwood' included studying the manufacturing of cost-effective vehicles like the Honda Civic.
The new architecture, known as 'NV9X', will not only underpin 'Redwood' but also a range of other vehicles including an inexpensive robotaxi.
Initially, production will begin at Tesla's Giga Texas facility, with plans to expand across other sites, including Giga Berlin and potentially a new factory in India.
Addressing market demands and design stagnation
The launch of 'Redwood' comes at a critical time for Tesla, addressing investor concerns over the aging designs of its Model 3 and Model Y.
Amidst mixed reviews of the recently shipped Cybertruck, 'Redwood' is poised to rejuvenate Tesla's lineup, offering a fresh and affordable option for EV buyers.