Tesla's &#34;affordable car,&#34; which has been delayed multiple times, has once again attracted market attention.
On January 24th, according to media reports, four insiders revealed that Tesla informed its suppliers that it plans to start mass production of a new electric vehicle codenamed &#34;Redwood&#34; in mid-2025.
Later that day, Tesla responded to the news, stating, &#34;We have never heard of it.&#34;
<h2>Report: &#34;Redwood&#34; to begin production in June 2025</h2>
In previous reports, two sources pointed out that &#34;Redwood&#34; is a new generation compact crossover electric vehicle that combines the high chassis and spaciousness of an SUV with the maneuverability and fuel efficiency of a compact sedan.
The report also stated that Tesla is concerned about high interest rates affecting consumer demand for cars and last year specifically inquired about pricing and invited bids from suppliers for &#34;Redwood.&#34;
Insiders revealed that &#34;Redwood&#34; is expected to begin production in June 2025, with a weekly production of 10,000 vehicles, but the earlier reports did not specify the final pricing and specific release schedule.
Sources said, &#34;Tesla is overly optimistic about most new product launches. Mass production is more likely to start in 2026.&#34; The sources also mentioned that the exact information about &#34;Redwood&#34; may first appear in the earnings report to be released on Wednesday afternoon local time.
However, before the release of the earnings report, Tesla denied the &#34;rumors&#34; of the affordable car once again.
<h2>Tesla: Denial once again</h2>
This is not the first time Tesla has been rumored to be producing an &#34;affordable car,&#34; nor is it the first time it has denied related rumors.
Seeing its sales champion title taken by BYD, and in order to better compete with economical car models and maintain its leading position in the global electric vehicle market, Tesla has been in need of a cheaper car to attract more customers in the fiercely competitive electric car market.
As early as 2018, Tesla stated that it would spend three years developing a low-cost electric vehicle, but also acknowledged that developing such a car would be &#34;very difficult&#34; considering the economic situation and competitive environment of the automotive industry. In 2020, Tesla postponed the timeline for the affordable electric car by three years.
In May 2022, Tesla announced that it is developing two new products with an annual sales target of 5 million vehicles. At the Tesla annual shareholder meeting, it was stated, &#34;The design and manufacturing technology of our products far surpass any other product in the industry.&#34;
In November of last year, there were reports that Tesla plans to develop this entry-level electric vehicle at its factory in Berlin, Germany.
Subsequently, two sources stated that the next generation of Tesla's architecture (internally referred to as NV9X) includes two or even more models.
However, to this day, after another round of denials, there is still no concrete news about this legendary affordable car.

TSLA

There have been continuous market rumors about Tesla's plan to produce affordable cars, while Tesla has repeatedly postponed and denied such claims.

Tesla to launch a $25,000 entry-level car in 2025? Tesla responds!