Reviving the Affordable EV Dream: Tesla’s Redwood Project

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Resurrecting Elon Musk’s Vision

Tesla’s long-discussed and once-paused ambition of introducing an affordable electric vehicle may be gaining momentum again. According to insiders, Tesla aims to commence production of an affordable electric car, codenamed “Redwood,” by mid-2025. This move aligns with Tesla CEO Elon Musk’s initial discussions in 2020 about launching an electric car with a targeted price tag of $25,000 (€22,000).

Competing in the Affordable EV Market

The resurgence of Tesla’s affordable electric car plans coincides with the intensifying competition in the market, where various automakers are launching their own cost-effective electric vehicles. Notably, two of the sources revealed that Tesla initiated the process by sending “requests for quotes” to suppliers for the “Redwood” model in the previous year. Projections indicate a substantial weekly production volume of 10,000 vehicles.

Tesla’s Previous Quarter Setback

Tesla, a pioneer in the electric vehicle sector, faced a setback in the final quarter of the previous year. Chinese automaker BYD surpassed Tesla as the world’s leading seller of electric vehicles during that period. While Tesla continues to dominate the luxury electric vehicle market, this push towards affordability is strategic, especially considering BYD’s success.

Pricing Dynamics and Market Rivals

As of now, Tesla’s most budget-friendly electric vehicle in Europe is priced at €28,990. In comparison, its Model 3 Sedan, the cheapest in its lineup, is available at €42,990 in Europe. This move towards a more affordable model is seen as a response to market dynamics, with other prominent European automakers such as Renault, Citroen, and Volkswagen also vying for supremacy in the affordable electric vehicle segment.

Beyond Affordable EVs: Tesla’s Diverse Portfolio

Apart from the pursuit of affordable electric vehicles, Tesla remains ambitious in other ventures. Reports suggest ongoing efforts towards the development of the Robotaxi, an autonomous taxi service. The envisioned Robotaxi, resembling the distinctive Cybertruck, adds another layer to Tesla’s diverse product portfolio, demonstrating the company’s commitment to innovation and market leadership.

SOURCE: Ref Image from The Driven

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