Everything seems to be gradually falling into place around the launch of Tesla’s low-budget model for the second half of 2025. Model 2, A or any other name, nothing is official, but internally, things are starting to move.
Between rumors, leaks and statements from Elon Musk, the Tesla for less than €25,000 is becoming more and more talked about. This new Tesla model could once again dynamite the electric car market, as the brand was able to do with the Model 3 (then Model Y). Sources close to the matter provided some fresh information on this subject to Reuters on January 24.
After the Highland project (for restyled Model 3) and Juniper (for Model Y), the new code name that we are likely to hear about more and more often is “redwood”. This would correspond to the low-budget Tesla long awaited since 2020.
Suppliers requested for quotes
Several sources, wishing to remain anonymous, confirmed to Reuters that suppliers are starting to be solicited by Tesla. The manufacturer would like to obtain quotes for elements of this new model.
According to these informants, this is a model that could be described as compact crossover (vehicle between an SUV and a sedan, generally less than 4.50 m in size). Which seems to return to what has been rumored for a year. Except that the biography of Elon Musk by Walter Isaacson has since caused confusion, because the vehicle is mentioned as positioned on a unique style (Cybertruck spirit), relatively unclassifiable from a design point of view.
Mid-2025: but how many months late?
The interesting information from these leaks mainly concerns this announcement of the start of production estimated for June 2025. This would begin first at the gigafactoy in Texas, before continuing to Mexico and Berlin. With a real increase in volume which can be imagined for 2026, but not necessarily for Europe. However, this seems optimistic, compared to the brand’s habits.
Elon Musk is known for promising untenable deadlines to develop a new model, especially since this one still wants to revolutionize everything: new platform, new production method, new design, which means that we can still seriously doubt the announced deadline . The impatient business leader is known for challenging his teams to move quickly on projects, but reality always ends up catching up with them (see the Cybertruck…). Delays are legion, and prices are also often revised upwards when marketing is launched.
If the €25,000 Tesla really appeared on the market in 2025, it would be a big blow for European brands like Renault, Citroën, Fiat or Volkswagen. These manufacturers certainly thought they would have free rein a little longer for their more affordable entry-level models. Chinese and Korean brands will also certainly watch this carefully.
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