Elon Musk

Tesla’s Next Milestone: ‘Redwood’ Compact Crossover to Roll Out by 2025

According to a report from Reuters, Tesla will begin production on a new compact crossover, code-named “Redwood,” in mid-2025. Tesla CEO Elon Musk initially said that the company would build an affordable vehicle with a price tag of around $25,000 in 2020 and that it would arrive within three years.

What We Know About Project “Redwood”

According to a Reuters report, Tesla has reached out to their suppliers to let them know that they plan on beginning “Redwood” production in the middle of next year. Their report also alleges that two anonymous sources with insider knowledge of “Redwood” have specified that the vehicle will be a compact crossover.

When Elon Musk first spoke about this vehicle at a 2020 event, it would likely have fully autonomous driving capabilities and a starting price of around $25,000. However, a report from Car and Driver claims that Musk retracted those statements during a third-quarter earnings call in 2022 before mentioning the project again in December last year.

Reuters also states that Tesla has estimated the weekly production volume for “Redwood” to be around 10,000 units. They also report that Tesla invited suppliers to bid on the project last year and that the automaker is eyeing a June 2025 start date for “Redwood” production. However, one of Reuter’s anonymous sources states that “volume output is more likely to begin in 2026.” Their sources also state that Tesla deconstructed a Honda Civic “to study how to make cheaper cars.”

In their report, Car and Driver thinks it’s likely that “Redwood” is the affordable car that Musk has been talking about since 2020; however, they also believe this vehicle will come with a higher starting price tag than the Tesla CEO previously mentioned. A starting price of around $30,000 is likely since the current starting price for Tesla’s Model Y is in the mid $40,000 range. Car and Driver also note that in 2022, Musk promised a Tesla robotaxi, which will use the same architecture as the “Redwood,” though he has yet to deliver on this promise.

According to a report from Motor Trend, Tesla also intends to diversify its vehicle lineup with a new commercial van and a bus in the coming years. They also state that Tesla expects to sell more than 40 million “Redwood” units over the vehicle’s lifetime once in production, making it as familiar a sight on roadways as the Toyota Corolla. Given that ambitious sales goal, it’s clear that Tesla is considering releasing the “Redwood” globally.

Considering how expensive electric vehicles (EVs) are and cars in general, a new one with a starting price of $25,000 to $30,000 would be a good option for many potential buyers. And given how extensive Tesla’s charging network is, anyone interested in getting a “Redwood” when it’s finally available won’t have to worry about range anxiety too much (as long as Tesla’s range estimates for the vehicle are accurate.)

Author: Jarret Hendrickson

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