Production of "Redwood" - The Tesla Compact Model Will Begin in June 2025 and Have Two Models - According To Three Sources

According to three sources, Tesla will begin production of its mass market compact car, code named "Redwood" around June 2025, coming in two models.

Tesla Compact "Redwood" - Coming in June 2025

According to four people familiar with the matter, two of which describe Tesla's compact car, code named "Redwood" as a compact crossover, Tesla plans to release the compact car around the middle or June 2025. The middle 2025 release date is quoted from three of the sources mentioned.

Reuters first shared the news today and says that Tesla sent request for quotes and bids for the "Redwood" model to suppliers last year and the weekly forecast of production is 10,000 vehicles.

Each of these people spoke on condition of anonymity because this matter is deemed confidential, according to Reuters.

Redwood is likely a nod to Redwood Materials, the battery recycling company founded by JB Straubel, who started at Tesla, and now is on the Board at Tesla.

Also, a fun fact is that Redwood, Juniper, and Highland are all towns in California. And, they are all trees - the names and their reason could be form either of these.

Tesla has always wanted to make a mass market EV and the incredible thing about this one is you can get a $17,500 EV (after the tax credit) with FSD (paying $199 month for it). That is some major disruption.

There has been no word from Elon Musk or Tesla's X account at this time, however, we do know that Tesla is planning to release an eventual $25,000 compact model, and this is the first time a code name of "Redwood" has been mentioned.

Elon Musk has said that he expects that there is a potential for 5 million units per year of upcoming products - likely compact variants - an SUV or crossover, and a sedan.

I would personally like to see a 2-seater sedan and a 4-seater SUV or crossover - however, the platform may simplify on 4-seaters for both variants.

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Tesla's Most Important Cars Are the Compact and Sub Compact

There is also word that the next generation Tesla architecture is internally called "NV9X" and that this architecture will be applied to two or more models, according to two people from the initial source.

The $25,000 compact car, in my opinion, should be built with only two doors - falcon wings, that open up the front and back seats.

As with anything that Tesla doesn't officially endorse, it's always good to have some skepticism about some of this stuff - however, reports about Juniper (Model Y) and Highland (Model 3) all seem to be true. It's quite possible that this report is also true.

The timetable seems to be right - starting in mid 2025, and reaching volume production in 2026.

That then sets the stage for gearing up for the sub compact car later this decade. The sub compact car will be what takes Tesla to its 20 million per year goal.

If you throw in a Giga factory announcement in India, then it should be quickly realized that Tesla, with its existing fleet of vehicles, has barely made a dent in the total size that its fleet will eventually be.

I give the compact car 5 million/year in production and the eventual sub-compact and robotaxi vehicle (without pedals/steering wheel) 10 million vehicles per year.

With Tesla's existing line-up, that puts the total at close to 20 million.

Built on the Cybertruck Platform?

It's also possible that the new compact car will be based on the Cybertruck platform. I think it will have around 240 to 250 miles of range and come in two variants - RWD and dual-motor.

I also think that performance will be the slowest of any Tesla, probably a 0-60 mph time of around 6.6 to 7.0 seconds. However, that's still impressive for a car.

I expect the vehicle to have a 48-volt architecture, steer-by-wire, and to have a camera setup with Tesla's latest hardware.

The vehicle could also look something like this, based on the Cybertruck platform:

One thing is for certain - this car will not be built like Tesla's existing cars are today. An unboxed method, which will allow the car to be built at multiple locations first and then combined, will be used - as well as any other manufacturing techniques Tesla has learned or thought of since they unveiled Master Plan Part 3.

I expect Tesla to make this car for around $20,000 - especially once it reaches volume production.

Good Timing - FSD Is Practically Autonomous

The launch of the compact in 2025 is also good timing with FSD version 12 that is being launched to non Tesla employees. This version uses only neural nets and initial reports are very good.

In the next year and a half, it's quite possible Tesla has a level 4 autonomous solution on their hands and mass-produced compact vehicles flooding the earth.

The robotaxi could also be the other vehicle mentioned here and Tesla could have the compact car be an SUV/crossover, with no sedan model, and that's another possibility.

If FSD continues to show promise like it has with its latest release, Tesla may opt to build the robotaxi vehicle sooner rather than later.

Tesla is just getting started, everyone. Buckle up - it's going to be a fun ride.

In Other Tesla News: Getting Launched In An Original Tesla Roadster - The Moment That Changed Everything For Me About Tesla

What do you think about this announcement that the Tesla compact is coming in June/middle of 2025? Is this something that should be believed?

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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn or watch my short Tesla videos on TikTok to stay in touch and follow my Tesla and EV news coverage.

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Article Reference: Reuters | Yashu Sharma