Tesla initially envisioned a production capacity of 10,000 vehicles per week for the new model.

Tesla reportedly wants to start production of its new electric vehicle called “Redwood” in mid-2025. According to a Reuters report confirmed by four different sources, Tesla sent “requests for quotations” or “invitations to bid” to suppliers last year for the “Redwood” model. Accordingly, the company initially envisioned a weekly production capacity of 10,000 vehicles for the new model. Tesla CEO Elon Musk has long been making plans to bring affordable electric vehicles and driverless “robot taxis” to the market, which are expected to be produced on next-generation, cheaper electric car platforms.

Targeting better competition with China

The new models, including an upcoming $25,000 car, will allow Tesla to compete with cheaper gasoline cars and a growing number of cheap electric vehicles, such as those made by China’s BYD 002594.SZ. Musk had originally promised to produce a $25,000 car in 2020, a plan that was later shelved and then revived.

Tesla’s cheapest offering, the Model 3 sedan, is currently available in the US starting at $38,990. Chinese BYD’s sales outpaced Tesla’s sales in the last quarter of last year. Musk expressed concern last year about the impact of high-interest rates on consumer demand for expensive products such as cars.