TL;DR: Tesla is reportedly aiming to begin mass production on a brand new electrical automobile in mid-2025 and desires suppliers to be prepared, a number of sources accustomed to the scenario just lately informed Reuters. Two of the folks described the brand new automobile as a compact crossover. Others have mentioned it could look extra like a compact Model Y than a hatchback-style Model 3.
Some of the sources mentioned Tesla reached out to suppliers final yr to get bids for the brand new mannequin, codenamed Redwood. Three sources mentioned mass production is slated to start in June of subsequent yr. If that timeline is correct, then we will in all probability count on an official announcement someday later this yr.
All of the sources spoke anonymously as a result of confidential nature of the topic.
Last yr, Tesla boss Elon Musk expressed concern relating to excessive rates of interest and the influence it could have on large purchases like automobiles. The present local weather could set the stage for a brand new wave of low-cost electrics that could higher compete with entry-level gas-powered automobiles.
According to a report from Notebook Check, Redwood (additionally referred to by some because the Model 2) could begin round $22,000 earlier than any potential subsidies. The automobile would possibly use Chinese-made batteries, nevertheless, which could disqualify it from getting a full $7,500 tax credit score from the US authorities. Even with out it, such a worth level could be extremely engaging to many.
The similar article says the Model 2 will characteristic a spread of round 300 miles and be constructed on the Tesla NV9X EV platform. The publication even claims Tesla bought a Honda Civic at one level simply to tear it down and discover ways to construct cheaper automobiles with out sacrificing high quality. That wouldn’t be completely exceptional for an automaker contemplating Chevrolet reportedly had a really shut have a look at the Ferrari 458 Italia when designing its mid-engine C8 Corvette.
Tesla’s fourth quarter earnings report is due out later right this moment after the bell.
Image credit score: Duren Williams, Maik Poblocki