Tesla says next-gen vehicle will start production in second half of 2025

Tesla has announced that it is gearing up to launch a groundbreaking vehicle, slated to hit production lines in the latter half of 2025. This vehicle aims to mark a significant shift, introducing a price point that promises broader accessibility. Touted as a game-changer, the car will boast entirely new manufacturing processes, poised to bolster Tesla’s ongoing expansion.

During the earnings call for Q4 2023 and the full year of 2024, Elon Musk, Tesla’s CEO, confirmed the projected timeline for this innovative vehicle’s production.

Speculation is rife about “Redwood,” the rumored moniker for this cutting-edge model. Despite the buzz, specifics about the car are sparse. Discussions have been swirling around Tesla’s ambition to roll out a Robotaxi, devoid of conventional driving controls. However, it’s not entirely certain if this new model will embody that level of automation.

It appears that the primary focus for this new offering is affordability, a strategic move by Tesla to fuel its growth trajectory.

Tesla is bracing for a temporary dip in its vehicle growth rate. This was highlighted in the Q4 2023 and Full-Year Earnings Shareholder Deck, which noted the company’s position between two significant growth phases. The first phase was propelled by the global outreach of the Model 3/Y platform, while the forthcoming phase hinges on the worldwide introduction of this new vehicle. Consequently, 2024 might witness a growth rate dip, as the team dedicates efforts to the next-gen vehicle’s launch at Gigafactory Texas.

The company has expressed its commitment to fast-tracking the next-gen platform, eyeing Gigafactory Texas as the launchpad. This initiative is expected to redefine vehicle manufacturing standards.

Looking ahead, Tesla foresees a surge in production and sales, riding on the back of this innovative platform.

However, Musk anticipates a challenging journey to mass production, reminiscent of the hurdles faced during the Model 3 ramp-up. He hinted at the intense dedication required, mentioning that employees might end up camping out on production lines to meet the ambitious manufacturing targets.

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