A new Tesla model may soon be on the way, and it could be cheaper.
According to Reuters, Tesla reportedly wants to begin production on a new compact crossover electric vehicle (EV) codenamed “Redwood.” Supposedly, Tesla informed its suppliers it would like to begin production for this new mass-market EV in mid-2025.
While not confirmed, these new models could include an entry-level car that costs $25,000 USD (roughly $33,800 CAD). Elon Musk has discussed potentially building a $25,000 USD EV in the past.
A new, cheaper model would put Tesla in closer competition with lower-cost gasoline-powered cars and other less expensive EVs entering the market. Currently, the cheapest Tesla in Canada is the Model 3, which starts at $53,990. The federal government also offers a $5,000 incentive for select electric cars under an MSRP of $55,000. Individual provinces also offer differing incentives.
We’ve heard talks of Tesla planning to build a cheaper EV before, but no official announcement has been made. At Tesla’s 2023 shareholder meeting in May, Elon Musk teased two new products that are on the way. “I just want to emphasize that we are actually building a new product,” said Musk at the meeting, “We are actually designing a new product. We’re not sitting on our hands here.” This compact crossover EV could be one of them.
Musk also said the design and manufacturing techniques of the new products “are head and shoulders above anything else that is present in the industry right now.”
Late last year, Tesla released the Cybertruck, which costs roughly $83,000. The truck has been subject to a slow rollout and has seen difficulties traversing some conditions.
There’s no word on when the design and pricing of these new cars will be officially revealed.
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