• Tesla plans to produce a mass-market EV, ‘Redwood,’ in mid-2025 with a target of 10,000 units per week.
  • Insiders suggest mass production might commence in 2026, and Elon Musk’s previous ambitious goals for new products have faced delays.
  • Tesla’s next-gen architecture, ‘NV9X,’ is expected to include multiple models, featuring an entry-level car, a robotaxi, and plans to cut vehicle costs in half.

According to four insiders, Tesla has notified suppliers of plans to produce a new mass-market electric vehicle, codenamed ‘Redwood,’ starting mid-2025, targeting the ‘compact crossover’ segment with an expected weekly production of 10,000 units.

Tesla faces skepticism over ‘Redwood’

Reports suggest that Tesla issued ‘Redwood’ model bid requests to suppliers last year, with production slated to begin in June 2025. Evaluations highlight Tesla’s historical challenges in meeting release and pricing targets, citing delays in the Cybertruck production and a 50% price hike from Elon Musk’s 2019 announcement.

A source commented, ‘They have been overly optimistic about most new product launches. Mass production is more likely to start in 2026.’ Musk has frequently mentioned plans for a new generation of models, including the rumoured $25,000 entry-level ‘Model Q,’ aimed at competing with cheaper gasoline cars and emerging low-cost electric vehicles. Tesla’s self-driving robotaxi and these models will be built on Tesla’s next-gen electric platform.

Tesla’s production plan for new models

Insiders reveal that the next Tesla architecture, internally labelled ‘NV9X,’ will include two or more models. Previous reports mentioned Tesla’s plans to produce an entry-level model near Berlin and explore manufacturing cheaper electric vehicles in India.

Elon Musk announced in May last year that Tesla was developing two new products with an annual sales target of 5 million units, later stating at the Tesla shareholder meeting that these products’ design and manufacturing technology were significantly ahead of the industry. According to Walter Isaacson’s biography on Musk, Tesla plans to develop a low-cost robotaxi and a $25,000 entry-level electric car based on the next-gen electric platform.

Furthermore, Musk stated in 2022 that Tesla plans to manufacture a specialised futuristic-looking self-driving taxi in 2024. Tesla has outlined plans to halve the costs of the next-generation vehicles but has not provided specific timelines for their release.

Also read: Musk seeks to rule AI and tech world with 25% voting control of Tesla, post IPO