Tesla plans to produce new electric vehicles by mid-2025. Tesla, which is lagging behind BYD, is expected to focus on new generation and more affordable vehicles.

Tesla is reportedly planning to produce new electric vehicles in mid-2025. According to four sources familiar with the matter, Tesla has told its suppliers that it wants to start production of a new electric vehicle codenamed “Redwood”. Two of the sources described the vehicle as a compact crossover model. Tesla CEO Elon Musk has long been whetting the appetite of the brand’s fans and investors for convenient electric vehicles and self-driving robot taxis. These vehicles are expected to be produced as part of a new generation of more affordable electric car platforms. These models, including a $25,000 entry-level car, are expected to allow Tesla to compete with more affordable fuel-powered vehicles and the growing number of affordable electric vehicles. BYD, a Chinese company that produces affordable electric vehicles, overtook Tesla in the last quarter of 2023 to become the world’s largest electric vehicle manufacturer. Musk first promised to produce a car worth 25 thousand dollars in 2020, but later shelved this plan. After that, the starting price of the Model 3 sedan, Tesla’s cheapest model on sale, is currently $38,990 in the US.