Tesla Inc. is reportedly aiming to begin production of a new mass-market electric car, codenamed "Redwood," by mid-2025. The U.S. automaker has sent requests for quotes to suppliers, indicating its intention to produce 10,000 vehicles per week. The Redwood model is described as a compact crossover, with Tesla CEO Elon Musk originally promising to build a $25,000 electric vehicle in 2020 before delaying the plan. Notably, Tesla's cheapest car, the Model 3 sedan, starts at $38,990 in the United States. Tesla faced competition from China's BYD Co. in the fourth quarter, losing its position as the world's largest EV maker. BYD offers a wide range of cars at various price points, from mass-market budget models to high-priced luxury cars.
Investors are eagerly awaiting Tesla's quarterly results, scheduled for release after the close of U.S. trading on Jan. 24. They are particularly interested in the company's guidance for 2024 deliveries and any comments regarding demand.
In 2023, Tesla implemented price cuts across its lineup in a bid to penetrate the mass market. These reductions, aimed at boosting volume, were especially notable in China, where Musk acknowledged the challenges of competing.
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