TESLA is reportedly set to launch an “entry-level” EV priced at just £20,000 – almost six years after Elon Musk first promised it.
The world’s leading electric car manufacturer is locked in a price war as Chinese firms look to crack the European market.
Tesla is reportedly set to release a sub-£20,000 EV in 2025
Tesla, which was knocked off its perch atop the sales charts by BYD in the final quarter of 2023, is now lining up a counter-punch in the form of the budget-friendly project, codenamed Redwood.
According to Reuters, the manufacturer has told suppliers to prepare for mass production of the new motor, rumoured to be a “compact crossover” model, in mid-2025, likely June.
The report adds that Tesla is hoping to be able to produce around 10,000 units every week from that point.
And company boss Mr Musk confirmed in a post-earnings call that production of the next generation of its lineup would start that year at its factory in Texas.
He said that he is “often optimistic” about the possibility of a sub-£25,000 EV, which would allow the brand to compete on price with cheaper petrol and diesel models rather than other EVs.
A production run in 2025 will mark almost six years since the enigmatic billionaire first floated the idea to investors in 2020.
It is believed that the top-secret motor could be dubbed the Model 2 when it is released but, for now, further details remain scarce.
Tesla remained coy concerning the project in its quarterly results report, saying: “In 2024, our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas.”
However, Reuters states that the company has sent “requests and quotes” for the Redwood car.
Mr Musk added: “I’m often optimistic regarding time. But our current schedule shows that we will start production towards the end of 2025.
“We’ll be sleeping on the line practically.”
However, this is not the first time an industry giant has tried to lower the floor of EV pricing.
Just last year, GM and Honda were forced to cancel a joint effort to produce cheap electric cars over profitability concerns, though both vowed to continue the effort separately.
Even if they do make it out the factory they may have trouble winning Brits over, as one driver who bought the UK’s cheapest EV slammed it as a “chore”.