Elon Musk has confirmed that Tesla is working on a “new generation of low-cost” electric car. Musk is confident that the new model will go into production in the second half of 2025 at the latest. Reuters has indicated that the new car will be a small crossover codenamed “Redwood”. Tesla has reportedly already sent out requests for quotes to suppliers and anticipates a weekly production volume of 10,000 vehicles. Musk has previously stated that the automaker is working on two new models of electric carswhich together could sell up to 5 million per year.
The vehicles will initially be manufactured at Tesla’s Gigafactory in Austin, Texas, and later at other locations around the world. Musk stated that the new construction technique will be “very difficult to copy”because you would have to “copy the machine that makes the machine that makes the machine that makes the machine…” and so on ad infinitum.
But he warned shareholders of “significantly lower” sales growth in 2024 as interest in the Model 3 and Model Y soon fades. Musk predicts a second wave of sales that will begin with the arrival of a new generation of cars in 2025.
However, as Musk himself admitted, the production plan “needs to be taken with a grain of salt”. Musk has been wrong in his predictions in the past. For example, while he was right when he claimed that the Model 3 would arrive in 2017, he was wrong about the estimated price of $35,000 (the Model 3 started selling for less than $50,000).