Tesla's $25,000 Model is set to launch in 2025

Internally, it is named "Redwood" – Tesla's new entry-level model, which is intended to secure the brand's growth. It is scheduled to go into production in mid-2025. Reuters cites four people familiar with the matter as the source for this news. They are said to have confirmed that Tesla informed suppliers of a planned production start by mid-2025.

Capacity: Up to 500,000 units per year

A production volume of 10,000 units per week is planned, which would allow Tesla to manage around 500,000 units per year in an ideal scenario – though this is not expected to happen in the initial years, but rather once demand and production are fully operational.

The compact crossover will be based on a new platform internally codenamed NV9X, which is expected to produce at least two models, including an autonomous robotaxi at a later stage. Elon Musk mentioned in December 2023 that the production would include new innovations. He said:

"It represents a significant step forward in the available technology."

However, it was not clear from this statement whether he was referring to the raw construction using Gigacasting or the still complex interior construction. Also in December 2023, he announced that the development was well advanced and that the compact model would initially be produced in the existing factory in Austin, Texas, and later in the new plant in Nuevo León, Mexico. Grünheide and China are also to be equipped for the compact model, which could allow Tesla to partially detach itself from fragile supply chains.