HomeNewsElon Musk Unveils Plans for $25,000 Tesla, Aiming to Outpace Chinese EV...

Elon Musk Unveils Plans for $25,000 Tesla, Aiming to Outpace Chinese EV Giants

Elon Musk is all guns blazing to regain its position as the world’s number one. If you’re not aware, Tesla is no longer the leader in EV sales worldwide as BYD took over the throne at the beginning of this year.

Tesla is in talks with suppliers to prepare for a new EV codenamed Redwood production to come in 2025.

Apparently, this would be a cool compact crossover that they’re planning to build a bunch of – 10,000 every week. They told their suppliers about it last year and said the production would start in June 2025.

Let’s find out what all we know!

Tesla $25k EV

Tesla’s $25k Electric Car

Elon Musk recently announced to investors that Tesla plans to launch a new affordable electric vehicle model by late 2025, potentially priced around $25,000. This compact “next generation” EV marks Tesla’s move to compete directly against affordable electric offerings from Chinese automakers in the global market.

Musk aims to make EVs more accessible to the masses through this low-cost Tesla model while maintaining the company’s performance and technology standards. It remains to be seen if Tesla can execute on delivering such an aggressively priced electric vehicle.

Tesla Project Redwood

The news first made headlines on an online Tesla forum where four people gave information about the upcoming affordable EV. Two of those even gave insiders information on the model to be a crossover vehicle.

Furthermore, Elon Musk confirmed this news while speaking at a post-earning event in January.

Elon said that they are eyeing to start production by mid-2025 at Texas Giga. The production plans will further expand to Mexico and other Tesla factories after deciding on production challenges.

Tesla’s $25,000 Next-Gen Vehicle ‘Redwood’ Set to Revolutionize the EV Market

Elon Musk’s Vision and Challenges

Elon Musk has been talking about making cheaper electric cars and self-driving robotaxis for ages now. Among these new models, a $25,000 EV, will help Tesla compete with regular entry-level electric cars and other affordable electric cars, like the ones made by China’s BYD.

Tesla always kept its eyes on the big picture setting itself apart from its competitors. However, in recent years many competitors like BYD, Nio, Xpeng, etc. are making bolder moves with their vehicles in the EV industry in China.

Tesla wants to make such affordable EVs at its Giga factories and is even thinking about building a factory in India for cheaper electric cars. The new Tesla design, called NV9X internally, will have two or more models, according to the sources.

Making Teslas More Accessible

Tesla wants to make a $25,000 car to compete with cheaper gas cars and other affordable electric cars, like those from China’s BYD. Chinese automaker BYD is making headlines worldwide with its affordable yet futuristic EVs.

Tesla no doubt has a reputation among all EV makers. But, in late 2023, BYD became the top electric car maker, beating Tesla. Moreover, Elon Musk too had a bit rocky roller coaster ride in recent years.

Elon Musk had promised a $25,000 car in 2020, but he later changed plans. Right now, Tesla’s cheapest car is the Model 3, and it starts at $38,990 in the U.S.

Musk earlier mentioned that high interest rates might affect people’s interest in buying cars. Tesla’s line-up does not necessarily come up as affordable for many as many cheaper options are available for buyers. BYD, Chevrolet, and many other new names are making cheaper EVs.

Other Ambitions and Setbacks

Musk had promised a cool-looking self-driving taxi in 2022 but had a bit of trouble reaching full self-driving capability. Last March, Musk and the Tesla team said they’d cut the cost of their next-gen cars in half, but they didn’t say exactly when.

Elon Musk spilled the beans at Tesla’s yearly meeting in May last year, sharing plans for two new EVs that could sell a whopping 5 million cars every year. He even bragged a bit about how much better these products are compared to others in the industry.

According to a biography by Walter Isaacson, Tesla is cooking up a cheap robot taxi along with the $25,000 EV using the same design.

Tesla Robotaxi Concept

Timelines and Expectations

Tesla has a history of facing delays and falling short on their launch dates and pricing predictions. Just look at Cybertruck and other model revamps. The $25,000 electric vehicle, being no exception, is expected to follow a similar trend.

Building up production volume is a time-consuming process, and Tesla is known for facing challenges in meeting their stated timelines. Biggest example is the Cybertruck production, which has experienced delays and a sluggish ramp-up.

The initial U.S. starting price of $60,990 is significantly higher than Musk initially promised in 2019. Given Tesla’s tendency to be overly optimistic about new product launches, we would not be really sure when the launch will happen.

Insiders suggest that substantial volume output for the $25,000 EV is more likely to kick off around 2026. Patience might be the key as Tesla works to overcome these challenges and bring their affordable electric car to a larger audience.


Even though Tesla lost the top spot in electric car sales to BYD, Musk is still dreaming big with a $25,000 electric car and a futuristic robot taxi. But, knowing Tesla’s history of delays, especially with the Cybertruck, we’re skeptical.

It might take a while for the $25,000 car to hit the roads – maybe around 2026. So, while we wait, share with us what are your views on the $25,000 EV Musk is promising. Again.

Purnima Rathi
Purnima Rathi
Purnima has a strong love for EVs. Whether it's classic cars or modern performance vehicles, she likes to write about anything with four wheels, especially if there's a cool story behind it.


Please enter your comment!
Please enter your name here

Most Popular