Tesla’s new compact crossover is set to come in 2025, but the question is will it cost $25,000? The vehicle which is codenamed ‘Redwood,’ could be the entry-level $25,000 car that the company had teased previously, and would help it to compete with BYD, a Chinese automaker.
Tesla’s New Compact Crossover to Come In 2025
Tesla is reportedly setting its sights on a major production launch in June 2025 for a new, widely accessible compact crossover vehicle, according to information from Reuters. The automotive giant has initiated the process by inviting suppliers to submit bids for collaboration on this project. Ambitiously, Tesla aims to reach a production rate of 10,000 vehicles per week. However, Tesla has not officially commented on Reuters’ report, as noted by The Verge.
This news of a potential production start in just over two years is emerging at a time when Tesla is navigating a highly competitive electric vehicle (EV) market. Notably, BYD, a Chinese automaker, has been identified by Reuters as having surpassed Tesla in global EV sales in the last quarter of 2023, claiming the top spot in the market.
BYD’s success has been largely attributed to its range of affordable cars, but as The Wall Street Journal points out, the company is now expanding into the more premium vehicle segment, positioning itself as a direct competitor to Tesla’s market domain.
A Future Tesla Model That Could Be Budget-Friendly
Elon Musk, the CEO of Tesla, has hinted at a future Tesla model that could be notably more budget-friendly, with a target price of $25,000. This ambition was first mentioned in a 2018 interview with popular YouTuber Marques Brownlee and later reiterated in 2020 when Musk discussed the possibility of lowering electric vehicle costs through more affordable battery cells and packs.
Walter Isaacson, Musk’s biographer, shared insights with Axios last year, revealing that this new vehicle might boast a cutting-edge, Cybertruck-inspired design and could play a pivotal role in Tesla’s autonomous robotaxi project. At a Tesla investor event in March, there was a hint of two new vehicle designs: a compact car and a small commercial truck.
The Company’s Goal Of A $25,000 Tesla Vehicle
Though Musk has openly discussed the goal of a $25,000 Tesla vehicle, the company has historically found it challenging to meet such ambitious price points. The journey of the Model 3 exemplifies this; initially aimed to be a $35,000 car, this price tag was not maintained for long. Similarly, the Cybertruck, initially announced at $39,900, eventually entered the market with a starting price of $60,990 after four years.
Tesla’s Most Recent New Model Before the Cybertruck
Before the late introduction of the Cybertruck last year, Tesla’s most recent new model was the Model Y, a mid-size SUV that began US deliveries in early 2020. The company’s other consumer offerings, the Model S, Model X, and Model 3, have been in the market since 2012, 2015, and 2017, respectively.
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