Tesla plans new compact crossover EV ‘Redwood’: Report

Electric vehicle (EV) maker Tesla is reportedly preparing for the production of a new EV codenamed “Redwood”, which could be an entry-level option.

Reuters revealed that Tesla is aiming for a ‘mass market’ electric vehicle in mid-2025. The firm has told suppliers to prepare a new supply chain based on the new requirements.

The EV maker sent “requests for quotes” for bids for the Tesla Model project “Redwood” last year and aimed for 10,000 vehicles weekly volume production, according to two sources related to this matter.

Tesla has been finding options to bring a more affordable EV into the market as the price for current-generation vehicles leads to a slowdown in customers’ interests.

Tesla CEO Elon Musk already mentioned Tesla’s interest in building an entry-level EV to raise market demand.

Since the beginning, the price has become a massive barrier to increasing EV sales. In that case, a cheaper $25,000 car would make a major difference and allow the EV segment to compete against the gasoline vehicles available as an easy purchase.

The lowest-priced Tesla Vehicle is the Tesla Model 3 sedan, which starts at $38,990 in the U.S. The production of a new vehicle is a big challenge for the automaker and it could delay the product to an extensive time.

Such an example would be the Cybertruck, which was announced in 2019 but took four years to meet its delivery in December 2023. Still, the company has yet to achieve a full-blown production rate at its factory.

Crossover:

This unknown car project is identified as a compact crossover in the report, however, there’s no specific model or aesthetics revealed.

The Tesla Model X and Model Y are the two crosses that are launched for EV buyers. Among these, the Tesla Model Y, a mid-size crossover SUV, maintained its edge in the market and remained a robust choice for EV buyers.

There could be some new changes that would appear on the design side but all of these speculations are currently on paper.