Tesla targets mid-2025 for production launch of affordable "Redwood" electric vehicle

Tesla is gearing up for the production of a new mass-market electric vehicle, internally known as "Redwood," with plans to commence manufacturing in mid-2025, according to sources familiar with the matter.

The upcoming model is described by some insiders as a compact crossover, signaling Tesla's continued push towards affordable electric vehicles.

During a recent earnings call, Tesla CEO Elon Musk confirmed the company's intent to begin production of its next-generation electric vehicle at the Texas factory in the latter half of 2025.

The "Redwood" model is part of Tesla's strategy to introduce more affordable electric cars, including a previously mentioned entry-level $25,000 vehicle. This move aims to position Tesla competitively against lower-cost gasoline-powered cars and the increasing market of affordable electric vehicles, particularly from manufacturers like China's BYD.