Tesla CEO Elon Musk first started talking about a $25,000 (€22,000) electric car in 2020. Company insiders say his plans have been revived.
Tesla wants to start production of an affordable electric car codenamed “Redwood” in mid-2025, according to Reuters who cited four people familiar with the matter.
Billionaire owner Elon Musk first started talking about a $25,000 (€22,000) electric car in 2020 but later parked the idea. The possible resurgence of such a vehicle comes as competitors launch their own affordable electric vehicles.
Reuters reported that two of the sources said Tesla had sent “requests for quotes,” or invitations for bids for the “Redwood” model, to suppliers last year. They also forecast a weekly production volume of 10,000 vehicles.
Tesla was beaten as the world’s biggest seller of EVs in the final quarter last year by Chinese carmaker BYD, which is backed by Warren Buffet.
Its cheapest EV sells for €28,990 in Europe. In comparison, Tesla’s cheapest car, the Model 3 Sedan, sells for €42,990 in Europe.
Meanwhile, European carmakers Renault, Citroen, and Volkswagen also have their own electric vehicles competing in the affordability race.
Alongside its mass-market EVs, Tesla is also said to be working on its Robotaxi, according to Musk’s biography by Walter Isaacson.
It is said to resemble the clunky-looking Cybertruck, which is another Tesla vehicle that may never be produced in large volumes.