Tesla has plans to build a new entry-level mass market electric vehicle codenamed “Redwood”.  According to Reuters, Tesla sent out “requests for quotes” to suppliers last year with the intention of starting production on the new EV mid-2025. The vehicle is being described as a compact crossover.  The EV automaker is forecasting building around 10,000 vehicles a week.

Tesla CEO Elon Musk has been batting around the idea of producing a $25,000 EV model for some years.  The company's least expensive car, the Model 3, has a starting price of $38,990 in the U.S. The new “cheaper” Tesla model , originally slated to be built at Giga Mexico for a 2020 release, will now be produced at Giga Texas in Austin, allowing the vehicle to qualify for EV tax credits at point of sale. This combo will potentially make this Model the least expensive new EV in America. Musk told author Walter Isaaccson last year, that the look of the car will be futuristic like the Cybertruck. 

Tesla is looking to produce the next American bread and butter model that will sit in driveways across the country, before less expensive Chinese built EVs make it to N.A. Timing of the next-generation compact vehicles was one of the most voted on questions by investors to Tesla ahead of its quarterly results report taking place on Weds. Jan 24.