Elon Musk confirmed that work on the “next generation low-cost” cheap Tesla EV is continuing. The vehicle will be a small crossover codenamed “Redwood”. Tesla aims to produce 10 thousand vehicles per week.
When is cheap Tesla coming?
Musk announced that production of the vehicle will start in the second half of 2025. He announced that it will initially be produced at Tesla’s Gigafactory in Austin, Texas, and then production will continue worldwide. He stated that there will be strong pressure to speed up the production process and that they will sleep in the factory if necessary. Elon Musk announced that the company will work on two new EV models that could sell up to 5 million units per year.
Emphasizing that the new production technique will be difficult to copy, Elon Musk said, “You have to copy the machine that makes the machine.” However, he noted that the new production line could get off to a slow start and sales growth could be “significantly lower” in 2024 due to the decline in Model 3 and Model Y.
Elon Musk is determined this time
Referring to Tesla’s FSD (full autonomous driving) progress, Musk said that other automobile companies should apply for FSD licenses. He added that important developments in this regard “will probably become clear this year.”
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Musk acknowledges that production forecasts are generally optimistic about the timing. He stated that the Model 3 was correctly launched in 2017, but was wrong about the price. If the predictions come true, the next generation cheap Tesla model may arrive on time, but the price drop may take some time.
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