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Tesla, the electric car giant led by CEO Elon Musk, is planning to produce a new affordable electric vehicle, codenamed ‘Redwood’. Planned for mid-2025, this car could be a compact crossover, making the electric car more accessible to a wider public.
A change of course in the market
Tesla’s decision to enter the economy car segment is a response to the growing competition in the EV market. With an expected starting price of $25,000 (about £19’834), this move marks a significant change from the Model 3, currently Tesla’s cheapest offering, selling for £36’707 in Europe. The launch of ‘Redwood‘ will allow Tesla to compete with cheaper petrol cars and a growing variety of affordable EVs, such as those produced by BYD, the Chinese manufacturer backed by Warren Buffet.
Focus on affordability
Musk had initially proposed the idea of a $25,000 car in 2020, a plan that was later shelved. Tesla sent ‘requests for quotations’ or invitations to tender for the ‘Redwood’ model to suppliers last year, expecting a weekly production volume of 10,000 vehicles.
Futuristic projects: robo-taxi
In addition to its mass EVs, Tesla is also working on its Robotaxi, according to the biography of Musk written by Walter Isaacson. It is said to resemble the squat-looking Cybertruck, another Tesla vehicle that may never be produced in large volumes. These developments suggest that Tesla is looking to expand its product portfolio to meet a wider range of consumers and mobility needs.
With the expected launch of ‘Redwood’ in 2025, Tesla not only increases its footprint in the EV market, but also opens up to a wider audience, making electric mobility more affordable. This move could mark a pivotal moment in the global transition to clean energy, bringing high-quality electric vehicles within reach of a wider public.
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