Tesla is eyeing the year 2025 as the target date for the release of an affordable compact crossover electric vehicle aimed at the mass market. The rumor that this upcoming Tesla model may turn out to be the automaker's most affordably priced product to yet is what has many excited about it.

2025 Tesla New Electric Vehicle

Tesla has informed suppliers of its plans to start manufacturing their 2025 electric vehicle. Tesla labeled it as code-named "Redwood". The production of 2025 Tesla new electric vehicle is set by the middle of 2025.

Moreover, reports shared that insiders-two of whom have given specific descriptions- revealed that the Redwood model will resemble a small crossover. If these buzzes are accurate, it might present the next Tesla car as an attractive and affordable option for buyers. The 2025 Tesla new electric vehicle might be a very different lineup compared to Tesla's existing cars in the market, well in terms of pricing.

Elon Musk had initially pledged to manufacture an electric vehicle priced at $25,000 by 2020, a commitment he temporarily abandoned but later resurrected. As of now, Tesla's most economical vehicle is the Model 3 sedan, begins at $38,990 in the United States.

In a statement from last year, Musk expressed his apprehensions regarding the potential adverse effects of high interest rates on consumer demand for substantial purchases such as automobiles. Sources familiar with the matter revealed that Tesla initiated a procurement process by sending out "requests for quotes" or invitations for bids for the "Redwood" model to its suppliers last year.

Furthermore, as cited from reports, these sources said that Tesla was committed to diversifying its product line. It foresees a weekly manufacturing capacity of 10,000 vehicles for the 2025 Tesla new electric vehicle code name - Redwood.

READ MORE: Apple Car Faces Delays with Launch Targeted for 2028; Autonomous Driving Leveled Down

Tesla's Competition with BYD

According to reports, there's a chance that the upcoming 2025 Tesla new electric vehicle will be competitively priced to help Tesla, positioning the company to take on its fast-growing Chinese competitor BYD, which surpassed it as the world's top electric-vehicle maker in the last quarter of 2023.

A price tag of $25,000 has been mooted by Musk in the past for the 2025 Tesla new electric vehicle, but considering its current cheapest vehicle - the Model 3 - retails for $38,990, it could be a challenge to achieve such an attractive price tag. Also, the Cybertruck ended up with a starting price of $60,990, around $20,000 more than originally expected.

As shared in Interesting Engineering website, unexpectedly Elon Musk, the CEO of Tesla and notably recognized for his involvement in the Twitter acquisition, openly recognized the capabilities of Chinese electric vehicle (EV) producers. During a recent Tesla earnings call, Musk proceeded to characterize them as the "most formidable car companies on a global scale.

Even though Tesla encounters strong rivalry from companies such as BYD, Nio, and Xpeng within the Chinese market, Musk conveyed his belief in their capacity to thrive internationally. Moreover, as stated reported in Reuters, in the previous quarter, Tesla encountered a setback as BYD Company Limited, which has Warren Buffett's support and holds the title of China's largest auto manufacturer by market capitalization, overtook Tesla as the leading seller of electric vehicles (EVs) worldwide.

RELATED ARTICLE: Samsung, Tesla Lead the Way in Home Energy Transformation

Copyright @ MOTORTIMES, All rights reserved. Do not reproduce without permission.