Tesla plans to build new electric vehicles in mid-2025

Tesla has informed suppliers that it plans to begin mass-market electric car production in the middle of 2025 under the codename “Redwood.” Elon Musk, the CEO of Tesla, stated on a Wednesday post-earnings conference call that the company plans to begin producing its next-generation electric vehicle at its Texas factory in the latter half of 2025. He noted that increasing production of the new car would be difficult and that Mexico and another plant outside of North America would come next. These decisions will be made later this year.

Musk has long piqued the interest of investors and fans in low-cost electric cars and self-driving robotaxis, which are anticipated to be produced on more economical platforms for electric cars in the future. These variants would enable it to contend with increasingly affordable EVs and less costly fuel-injected cars.

Elon Musk disclosed in May that Tesla was working on two new models that, when put together, could sell five million vehicles a year. At the annual shareholder meeting, he declared that the product designs and manufacturing processes utilized by the company are unparalleled in the industry.

Based on the same vehicle design, which the company internally refers to as “NV9X,” Tesla intends to produce an affordable robotaxi and an entry-level electric automobile priced at $25,000. Given the cost of battery packs and the continued difficulties in producing high-quality, affordable cars, it will be difficult to make money on these EVs.

Musk expressed concern last year about how high borrowing rates would affect consumer demand for expensive goods like vehicles. Last year, Tesla invited suppliers to submit quotes or bids, for the “Redwood” model. The company projected a weekly manufacturing capacity of 10,000 vehicles, with assembly starting in June 2025.

Tesla has a history of missing its selling point and launch targets, and increasing volume would take time. The company is interested in establishing a facility in India to create less priced electric cars, and it has ambitions to build affordable cars at its manufacturing near Berlin.