Tesla Staying Secretive On Mass Market Redwood EVs That Could Start At $25K In 2025

Tesla is currently working on plans to make a more affordable electric vehicle codenamed “Redwood,” according to a report in Reuters. The company is hoping to make the car available to customers by mid-2025, and according to sources who are familiar with the matter it appears as if it will be a compact crossover vehicle. The entry-level price tag is expected to be $25,000 USD. As usual, Tesla declined to comment on this new information.

Tesla CEO Elon Musk has made statements in the past about the desire for the company to make a more affordable model. The best Tesla has been able to offer is its Model 3 sedan with a price tag of $38,990 USD. However, Musk appears to be concerned about the impact of higher interest rates on sales, which is the reason for the renewed push for a lower price vehicle.


To try and get to that lower price point Tesla has even tried to learn lessons from Honda. According to sources with knowledge of the matter, Tesla tore down a Honda Civic costing $23,950 USD to see what they can learn about making a vehicle at this price point. This shows how serious Tesla is about getting costs down while still making a reliable vehicle.

However, it’s important to keep in mind that Tesla consistently misses target release dates. Famously, the self-driving capability of Tesla vehicles isn’t near the level that Musk claimed the feature would be at by this point in time. Most of their vehicles have also run into delays, and if history is any indication this less expensive vehicle will probably come later than prospective customers would like.