Elon Musk, the CEO of Tesla, stated that the company plans to begin producing its highly anticipated next-generation electric cars at its Texas plant in the second half of 2025. However, Tesla company shares fell 6.5% in premarket trade after Musk said that it would be difficult to ramp up manufacturing of the new car.
Tesla also issued a warning about a significant slowdown in sales growth this year before the launch of the new model. Musk hinted that any acceleration of Tesla’s slowing rate of growth would require a tremendous amount of revolutionary manufacturing technology. His prediction came after a Reuters report earlier in the day that claimed they had instructed suppliers to get ready for the launch of a smaller crossover car in June 2025. This launch is crucial for the manufacturer, as it loses market share to less-priced EVs like those produced by China’s BYD.
Redwood-branded Tesla electric cars
Tesla initially unveiled the blueprints for the anticipated mass-market electric cars, which is rumored to be a compact crossover. Musk informed the investors that the company anticipates starting production at its Texas factory in the second half of 2025. The vehicles, known as project “Redwood,” will feature a $25,000 entry-level vehicle that would enable company to compete with less priced gasoline-powered vehicles and an increasing number of low-cost EVs, such those produced by China’s BYD, which recently overtook the former as the largest EV maker in the world.
