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Bedour Ibrahim

Tesla to produce compact crossover green car with price of$25thousand next year

Wednesday 24/January/2024 - 10:07 AM
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Tesla، the American green car maker plan to start production of a new mass market compact crossover electric car code named Redwood with an entry-level $25 thousand in June next year، as its founder and chieve executive officer Elon Musk has long whetted fans' and investors' appetites for affordable green vehicles and self-driving robotaxis that are expected to be made on next-generation، cheaper electric vehicle platforms.

Tesla to start production of a new mass market electric vehicle

Tesla، whose CEO Elon Musk is the richest billionaire in the world،  has told suppliers of green car production it wants to start building of a new mass market electric vehicle as a compact crossover code named Redwood in mid-2025، according to four people familiar with the matter.

Tesla CEO Elon Musk has long wanted to launch those models، including an entry-level $25،000 car، to compete with cheaper gasoline-powered cars and a growing number of inexpensive electric vehicles، EVs، such as those made by China's BYD which overtook Tesla as the world's top green  cars، EV، maker in the final quarter of last year.

Tesla plans to build cheaper green cars in Berlin and in India

Tesla، the EV maker، also plans to build cheaper green cars at its factory near Berlin، and is interested in building a factory in India to produce less expensive electric cars، in addition to its factories in Shanghai and in Fremont، California.

 Elon Musk CEO of Tesla had first promised to build a $25 thousand   green car in 2020، a plan he later shelved and then revived، however، Tesla's cheapest offering، the Model 3 sedan، currently has a starting price of $39 thousand in the United States.

The impact of high interest rates on consumer demand

Musk founder of Tesla، said last year he was concerned about the impact of high interest rates on consumer demand for big-ticket items like green cars، but Tesla sent this year requests for quotes، or invitation for bids for the Redwood model، to suppliers last year، and forecast weekly production volume of 10 thousand vehicles.

Musk affirmed that Tesla production would begin in June 2025، three of the sources said and all spoke on condition of anonymity because the matter is confidential and Tesla did not respond to a request for comment.

Tesla expected a 21% rise in 2024 deliveries

Elon Musk CEO of Tesla expected a 21% rise in 2024 deliveries، well below the long-term annual target of 50% that Musk set about three years ago، while timing of next-generation compact vehicles، opens new tab was one of the most voted questions by investors to Tesla ahead of its quarterly results report on today afternoon.

Musk founder of Tesla، affirmed in May that Tesla was working on two new products، with the potential for combined sales of 5 million vehicles a year eith both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in the industry.

Tesla plans to make an inexpensive robotaxi

Musk announced at Tesla's annual shareholder meeting that the company plans to make an inexpensive robotaxi and an entry-level، $25 thousand  electric car based on the same vehicle architecture، according to Walter Isaacson's biography of Musk released in September، which includes interviews with the CEO and executives.

Musk، CEO of Tesla، noted in 2022 that Tesla would make a dedicated self-driving taxi with a futuristic look in 2024، after several misses at its goal of achieving full self-driving capability، while he and other Tesla executives laid out plans last March to halve the cost of its next-generation vehicles، but did not provide a timeframe for the launches.

Cybertruck $61 U.S. starting price is 50% higher than Musk aimed in 2019

Musk، founder of Tesla، explained that the company has a track record of missing its targets for launches and pricing، and it would take time to build volume، as Cybertruck production، for instance، has been delayed and slow to accelerate and its $61 U.S. starting price is 50% higher than Musk touted in 2019، but he said last year the affordable model would initially be built at Tesla's factory in Texas، while they have been overly optimistic on most of their new product launches، volume output is more likely to begin in 2026.

Tesla admits that making a profit from the cheaper EVs will be challenging، given the costs of batteries as well as traditional difficulties producing quality inexpensive electric vehicles and in recent years it tore down a Honda Civic، whose price starts at $24 housand in the United States، to study how to make cheaper cars.