(Motorsport-Total.com/Motor1) – Tesla plans to start production of its new entry-level model, which goes by the code name “Redwood,” in mid-2025. The US carmaker has now informed its suppliers of this, as four insiders told Reuters.

Company boss Elon Musk confirmed this yesterday in a conference call after the quarterly report. He wants to start production of the “next generation electric car” in the second half of 2025. Initially, the car, which is often hypothetically referred to as Model 2, will be built in the Gigafactory Texas; later, the new Factory in Mexico and another factory outside North America. Which factory that will be will be decided later this year, Musk said.

Musk had already announced an entry-level model priced at $25,000 at Battery Day 2020. Since then, rumors have been rife. There are supposedly two versions of the new Model 3, namely a robotaxi and a normally controlled carSome of the insiders quoted called the new Tesla platform “NV9X”. It would support two or more models.

In its quarterly earnings announcement, Tesla writes that it is currently between two major growth waves: The first began with Model 3 and Y, the next will come with the new platform. In 2024, however, sales could grow “significantly less” than in 2023, as the company is working on the launch of the new platform.

Tesla sent out tenders for various parts of the “Redwood” model to suppliers last year. The weekly production volume should be 10,000 vehicles, said two of the anonymous insiders. Production will begin in June 2025, said three sources.

10,000 units per week would mean an annual production of over 500,000 units. For comparison: Almost 1.8 million units of the Model 3 and Y were produced in 2023. It should be remembered that the ramp-up of a new model takes a lot of time. The ramp-up of the new model is likely to be particularly challenging because Tesla wants to use new gigacasting methods.

There is some skepticism about whether the new model will really launch in 2025. Even Musk himself said on Wednesday: “I’m often optimistic about timing. But according to our current plan, we will start production towards the end of 2025.” They will “practically sleep on the assembly line.”

More affordable electric cars:
Cheap electric cars: These models under €25,000 are planned
Tesla Model 2: The $25,000 model as a rendering

Bottom line

Tesla is currently still struggling with the production of the 4680 cells and with Cybertruck production. At the same time, they want to work on the sophisticated entry-level model, the production of which is due to start in a year and a half. The notorious optimist Elon Musk himself seems skeptical that this will work. But even if it does: The Citroen e-C3 for 23,300 euros and other inexpensive models will be launched in 2024. If Tesla is not ready until 2026, even VW could be faster with its ID.2.

Source: Reuters, Tesla quarterly report (PDF)