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Home ยป Tesla Aims for 2025 Launch of codenamed “Redwood” – A More Affordable Electric Crossover

Tesla Aims for 2025 Launch of codenamed “Redwood” – A More Affordable Electric Crossover

Canaccord Genuity just cut his price target on $TSLA from $267 to $234

Tesla is setting its sights on launching a new mass market electric vehicle in 2025 aimed at a lower price point than its current models, according to a recent Reuters report. The EV maker has reportedly told suppliers that an affordable crossover codenamed “Redwood” is slated to begin production in mid-2025.

The move aligns with Tesla’s goal of achieving higher volume sales and making electric vehicles accessible to more consumers. According to sources, Redwood will be a compact crossover SUV built on Tesla’s next-generation “NV9X” vehicle architecture. This modular platform is designed to enable the production of multiple affordable models.

CEO Elon Musk has previously discussed plans for a future $25,000 Tesla that would hit volume production. However, those timelines have been pushed back as the company has focused on other initiatives. Musk also aims to produce a low-cost dedicated robotaxi based on the same platform.

Bringing a more affordable EV to market won’t be easy for Tesla. Battery costs remain high, and it’s challenging to achieve quality and profitability on inexpensive vehicles. However, the company has been studying techniques to optimize manufacturing and reduce costs.

The Redwood crossover isn’t expected until 2025, but it could be a game-changer for Tesla. Hitting a lower price point could significantly expand its addressable market. And producing millions of cheaper EVs aligns with Tesla’s mission to accelerate the advent of sustainable transport.

As Tesla gears up to launch this future affordable EV, eyes will be on whether it can overcome cost barriers while still delivering the quality and performance consumers expect. Redwood may not arrive for a few years, but it already looks to be one of Tesla’s most important models yet.

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