• Reuters says that the secret name for Tesla’s entry-level small crossover is Redwood.
  • Reporters close to the news agency said that production of the Redwood will start in June 2025 and reach 10,000 units per week.
  • Elon Musk, CEO of Tesla, first talked about a cheap Tesla in 2020. He said that he thought it might be ready in three years and start at $25,000.

After years of delays, Tesla finally started making the sharp Cybertruck at the end of 2018. It looks like the Texas-based company is already working on a new car, though. “Redwood,” Tesla’s secret name for the new car, will start being made around the middle of 2025, according to Reuters.

In 2025, Tesla is likely to release a small car that costs less than $30,000

Reuters said they talked to four people who knew about Tesla’s plans. Two people who did not want to be named say that the Redwood is a little crossover. There have been rumors for a few years that Tesla is working on a cheap car. Musk first brought up the idea at an event in 2020. He offered a price of $25,000, the ability to drive itself fully, and a three-year release window.

Musk revived the car in December 2023 after changing his mind about how to build it in 2022. Reuters says that Tesla asked vendors to submit bids for the Redwood last year. The factory could make 10,000 cars a week, according to estimates. Sources say that production is set to start in June 2025. When they released most of their new goods, they were too optimistic. Reuters was told that the first large-scale production is set to start in 2026.

Musk has told people that the Redwood is a cheap car, but the starting price will be more like $30,000. This is because the Model Y costs almost $40,000 now. Reuters spoke to two people who said that Tesla smashed a Honda Civic “to study how to make cheaper cars.” Musk said that the next model will be made in 2023 at Tesla’s plant in Austin, Texas.

Musk has said for a long time that he will make a specialized robotaxi with the same design as the Redwood, but he still needs to do it. Even though Musk said in 2022 that the self-driving cab would go into production in 2024, we wouldn’t expect the robotaxi to come out until after Redwood production started.

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