Tesla’s $25,000 Next-Generation Electric Vehicle Nears Production
Tesla’s $25,000 Next-Generation Electric Vehicle Nears Production
A New Era of Affordable Electric Mobility
As the electric vehicle market continues to mature, Tesla is poised to revolutionize mass-market transportation with its long-anticipated affordable model. The company’s next-generation platform vehicle, reportedly codenamed “Redwood” and potentially to be marketed as the “Model Q,” represents Tesla’s strategic move to expand its market reach beyond premium segments and challenge established budget-friendly electric vehicles from competitors.
Production Timeline and Status
According to recent reports, Tesla is targeting production of its next-generation affordable vehicle for mid-2025. During an earnings call in early 2025, CEO Elon Musk confirmed that the company expects to launch the new model in “early 2025, if not late this year,” though he also cautioned about potential delays due to manufacturing complexities.
More specific information from Tesla’s communications with suppliers indicates that the company wants to start production of the “Redwood” model in mid-2025. This timeline aligns with Musk’s statements in earnings calls where he mentioned production was targeted “towards the end of 2025,” acknowledging the complexities involved in establishing a new manufacturing process.
The journey to this affordable Tesla has not been straightforward. In April 2024, Reuters reported that Tesla had temporarily shelved plans for a $25,000 electric car, causing the company’s stock to fall. However, subsequent reports and statements from Tesla have indicated that an affordable model is indeed still in development, albeit with shifting timelines and specifications.
The “$25,000 Tesla” has been a long-standing promise from Elon Musk, first mentioned prominently during the company’s “Battery Day” event in 2020. This price point was positioned as the culmination of Tesla’s ultimate product strategy: start with aspirational luxury vehicles (Roadster, Model S/X), move to mass-market premium offerings (Model 3/Y), and finally create truly affordable electric mobility for the masses.
However, recent statements from Musk have complicated this narrative. In late 2024, Musk stated that it would be “pointless” to build a $25,000 Tesla for human drivers, suggesting that such a vehicle would only make sense in the context of autonomous robotaxis.
More recent reports indicate that the vehicle, now widely referred to as the “Model Q,” may be priced around $30,000 before incentives, or potentially as low as $22,500 after applying the current $7,500 federal tax credit (though the future of this credit is uncertain under the incoming administration).
