February 26, 2024

Tesla is reportedly working on compact crossover EV codenamed “Redwood” with production set to start in June 2025, sources familiar with the matter told Reuters. The company reportedly sent requests for quotes for the new model to suppliers last year, predicting a weekly production volume of 10,000 vehicles.

The rumor lines up with Elon Musk’s comments at a May 2023 shareholder meeting that Tesla was working on two new EV models that could sell up to 5 million a year combined. “Both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in the industry,” he said at the time.

Tesla has also been promising a $25,000 car for some time, with Musk dropping the idea then reviving it due to high consumer interest rates (the cheapest Model 3 is $38,990). However, Reuters‘ sources didn’t mention the price of the vehicle set to arrive in 2025.

The report arrives at a convenient time for Tesla, as critics have recently been after the company for sitting on its haunches with the relatively stale Model 3 and Y designs. The timing of any new EVs was one of the most voted questions from investors for Tesla’s earnings call, set for this afternoon (January 24).

If the new vehicles live up to Musk’s description, they could help allay those concerns. At the same time, Tesla is starting to ship its Cybertruck EV to decidedly mixed reviews, with some users decrying quality issues and others lauding the performance and audacity of the vehicle.