Tesla said that its next-generation electric vehicles will begin production in the second half of 2025, marking that the company is about to enter a new price range and reach more consumer groups. This car will introduce a new production line and is expected to promote Tesla’s continued rapid development.
Tesla CEO Elon Musk said during the fourth quarter of 2023 and full-year 2024 earnings calls that the next generation of electric vehicles is expected to be put into production in the second half of 2025.
It is noticed that although rumors about its internal codename “Redwood” have surfaced, the details of this new car are still vague. Tesla has mentioned developing driverless Robotaxi more than once before, but it is unclear whether the next generation of electric vehicles will achieve fully autonomous driving.
At present, this new car is more focused on affordability, which is the key to Tesla’s future growth.
Tesla expects its sales growth to slow “significantly” in the short term. The company said in its financial report: “Tesla is between two major waves of growth, the first beginning with the global expansion of the Model 3/Y platform, and the next wave will be kicked off by the global expansion of the next-generation vehicle platform. 2024, our vehicle sales growth will likely be much slower than in 2023 as the team works on the production of next-generation vehicles at Gigafactory Texas.”
In addition, Tesla also said: “We are focused on bringing the next generation platform to the market as soon as possible, and plan to start production at the Texas Gigafactory first. This platform will completely revolutionize the way cars are produced.”
In the long term, the launch of next-generation vehicles will lead to higher production and sales, further driving Tesla’s growth. Elon Musk expects the road to production of the next generation of electric vehicles to be challenging. The leader, who has always been known for his hands-on approach, often mentioned the hardships of the ramp-up phase of Model 3 production. He seemed to have similar expectations for the next generation of electric cars, saying employees “may be sleeping directly on the production line” when production starts.
