Tesla has announced to its suppliers that it wants to begin production of a new mass-market electric crossover by mid-2025.
According to a report from Reuters, some folks close to the matter describe the potential EV as an entry-level compact crossover, and that Tesla has codenamed the project “Redwood.”
It’s worth noting that Tesla CEO Elon Musk has pondered the feasibility of affordable electric vehicles in the past, going so far as to promise a $25,000 EV in 2020. Of course, Musk ended up temporarily scrapping this idea, until now.
An entry-level $25,000 all-electric crossover would allow Tesla to better compete with cheaper ICE-powered vehicles, along with the growing number of inexpensive EVs. For reference, Tesla’s cheapest offering is currently the Model 3 sedan, which currently boasts a starting MSRP of $40,380 in the United States including the destination fee.
If Musk decided to take this route, production of the electric crossover would likely commence in June 2025.
Back in May 2023, Musk announced that Tesla was working on two new products and had this to say about them in a recent shareholder meeting, “Both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in the industry.”
Tesla Model Y
With the outgoing Chevy Bolt EV featuring a starting price of $27,495, a $25,000 Tesla would likely serve a position in the U.S. market previously occupied by the Bow Tie brand’s EV crossover. At present, the Chevy Equinox EV will have a starting MSRP of $34,995.
Speaking of the Bolt EV, the all-electric crossover officially ended production in December 2023. Moving forward, General Motors has confirmed that there will be a second-generation of the Bolt EV, and that it will arrive for the 2025 model year. Based on the Bolt EUV rather than a clean-sheet design, it’s currently unclear how The General will price the next-gen Bolt EV, and if it would be comparable to a potential $25,000 Tesla crossover.
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Comments
If Tesla does produce a $25,000 model, it will be so spartan that the Chevy Bolt EUV will be a luxury compact EV in comparison. Even my Chevy Equinox has a better interior than the Tesla Model Y, and cost much less. Real buyers want to ride in comfort and care less about the propulsion. Only Tesla fanboys will buy that cheap model.
So we might actually see it in 2028? 29?
If GM simply put the ultium battery of 300 miles and higher DC charge rate of say 150kwh, they would have a killer. Only need the Bolt EUV nothing else on that low end.
The Y interior is inferior to a Chevy Bolt………someone is smoking the GM weed. I only looked a Bolt before I purchased a Y. Dare you to drive both, back to back!,
Another boring crossover. This industry is dead.