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Tesla’s $25,000 EV could launch as soon as 2025, according to new rumor

Published Jan 24th, 2024 12:50PM EST
Tesla Model S on the open road.
Image: Tesla

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First it was the Model S. Then it was the Model 3. Since then, Tesla has been slowly marching towards the next vehicle to revolutionize the electric vehicle industry — the long-rumored $25,000 EV. Now, we may have our first real clue as to when this new EV might make its way off the production line.

As reported by Reuters, four people “familiar with the matter” say that the company has contacted suppliers about its intention to start mass production of a new electric vehicle in the middle of 2025. The vehicle is codenamed “Redwood” and, according to two of the sources, will be a compact crossover.

The rumor predicts that “Redwood” is the $25,000 electric vehicle that Tesla has been promising to build since 2020. The project has gone through many iterations and even shelved at least once but, like Elon Musk has said on multiple occasions, a cheaper EV is pivotal to shifting the world to sustainable energy.

According to the sources, the company is telling suppliers that it is expecting enough demand to build 10,000 of the model per week or over half a million per year.

Tesla sent “requests for quotes,” or invitation for bids for the “Redwood” model, to suppliers last year, and forecast weekly production volume of 10,000 vehicles, two of the sources said. Production would begin in June 2025, three of the sources said. All spoke on condition of anonymity because the matter is confidential.

Tesla's upgraded Model 3 from September 2023.Image source: Tesla

Half a million cars per year — right off the bat — is a pretty big number, especially for a vehicle that doesn’t exist yet. The Model 3, in comparison, reached over 460,000 units of production in the second quarter of 2023 and that car has been around for 6 years. That sounds like it could be the car that Tesla has been promising and we’ve all been waiting for.

While we wait for the $25,000 Tesla (hopefully in 2025), there’s a lot already going on for the company in 2024. First, the company brought its Stealth Gray and Ultra Red color options which were previously only available on the Model S and Model X to the Model 3 and the Model Y. They also dropped the range estimates for a number of its vehicles after facing mounting pressure from unhappy customers.

Image source: Tesla

The company also launched its redesigned Model 3 in the United States after unveiling the new design back in the fall of 2023. The new version of the Model 3 features an overhaul to the front design on both the hood, grill, and lights. As with any time that a car company changes the design, it’ll be sure that some will prefer the old design. The headlights are noticeably sleeker, giving off a more aggressive design.

Tesla has also dropped the price of the Model Y in Europe as rumors of a redesign for that vehicle continue to build. A redesign of the Model Y could come as soon as later this year. Also, speaking of range estimates, a Cybertruck owner found that the electric truck got much less range than advertised after driving it over 10,000 miles.

2025 could be a major year for Tesla if it is able to deliver this long-promised $25,000 EV, but 2024 itself is turning into quite the year for the company on its own.

Joe Wituschek Tech News Contributor

Joe Wituschek is a Tech News Contributor for BGR.

With expertise in tech that spans over 10 years, Joe covers the technology industry's breaking news, opinion pieces and reviews.

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