Tesla boss Elon Musk has been promising an entry-level $25,000 electric vehicle for six years. He first mentioned the possibility of the car in 2018, saying it would happen within three years, then doubled down on the idea at Tesla’s Battery Day in late 2020. According to reports from Reuters, Tesla has inquired with suppliers to bid the project, aiming for weekly production volume of 10,000 units globally. Reuters’ sources claim the tiny Tesla would hit the market in June of 2025. The American electric vehicle company is aiming to build the car at its Texas and Berlin factories, and is potentially looking to build another factory in India for the new model.
Tesla’s current least expensive model is the $38,990 Model 3 Rear-Wheel Drive. Getting a small hatchback or crossover to best that price by more than $13,000 isn’t going to be easy work for Tesla. Apparently the company has been buying and taking apart mid-sized sedans like the Honda Civic in order to figure out how to efficiently and inexpensively build a high-volume product. The Civic currently starts at $23,950 in the U.S. market, and as good as it is, an electric competitor from Tesla for just a thousand dollars more would be quite a compelling product.
With increasing pressure from inexpensive Chinese brands like BYD and Tesla’s shrinking market share woes, perhaps it would have been better for the company to focus on the so-called Project Redwood EV for the masses than a six-figure stainless steel super truck. Launching this car last fall would have been a much more significant event in comparison to the weird pickup.
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