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Insights from four individuals well-acquainted with the matter unveil that two among them characterize the impending model as a compact crossover.
The luminary at the helm of Tesla, CEO Elon Musk has perennially titillated the fervour of enthusiasts and stakeholders alike with the prospect of affordable electric vehicles and self-driving robot taxis.
These futuristic marvels are poised to materialize on next-generation, cost-efficient electric car platforms.
Envisaged models, including an entry-level vehicle boasting a modest $25,000 price tag, position Tesla strategically to vie with conventional, economically priced gasoline-powered cars.
The market landscape is further populated by a burgeoning array of economical electric vehicles, exemplified by the offerings from China's BYD.
In a twist of industry dynamics, BYD ascended to the summit, surpassing Tesla as the preeminent electric vehicle manufacturer in the waning quarter of 2023.
Musk, in the annals of his visionary aspirations, initially pledged the fabrication of a $25,000 car in the year 2020—a commitment that underwent temporary shelving only to be resurrected later.
As it stands, Tesla's most affordable offering, the Model 3 sedan, commands a base price of $38,990 in the United States.
Expressing concerns about the repercussions of elevated interest rates on consumer demand for high-value acquisitions, Musk articulated these reservations last year.
In tandem, Tesla dispatched "requests for quotes," serving as invitations for bids pertinent to the enigmatic "Redwood" model, to its cadre of suppliers during the preceding year.
Intriguingly, the projected weekly production volume for this model, as disclosed by two reliable sources, hovers at an ambitious 10,000 vehicles.
The commencement of production is slated for June 2025, as disclosed by three of the insiders who spoke under the veil of anonymity due to the confidential nature of the matter. Regrettably, Tesla remains silent in response to the entreaty for commentary.
The temporal dimension of the impending next-generation compact vehicles has emerged as one of the most heavily favoured queries among investors seeking insight from Tesla.
This anticipation precedes the eagerly awaited quarterly results report, scheduled for release on Wednesday afternoon.
The projections are anticipated to reveal a modest 21% surge in deliveries for the year 2024, a figure falling noticeably short of the ambitious long-term annual target of 50% articulated by Musk approximately three years ago.
In May, Musk divulged that Tesla's R&D endeavours were dedicated to the development of two groundbreaking products, harbouring the potential for a combined annual sales volume of 5 million vehicles.
He expounded, "Both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in the industry," during Tesla's annual shareholder meeting.
According to the biographical account penned by Walter Isaacson and unveiled in September, Tesla's blueprint encompasses the fabrication of a cost-effective robot taxi and an entry-level electric car, bearing a modest $25,000 price tag.
This revelation, gleaned from interviews with Musk and other high-ranking executives, underscores the strategic coherence in leveraging a shared vehicle architecture for both ventures.
In the year 2022, Musk proclaimed Tesla's commitment to crafting a distinct, autonomous taxi adorned with a futuristic aesthetic, slated for unveiling in 2024. This declaration followed a series of setbacks in achieving the elusive goal of full self-driving capability.
March of the same year witnessed Musk, alongside other Tesla executives, delineating strategies to slash the cost of their next-generation vehicles by half. However, a specific timeline for these launches remained conspicuously absent.
Drawing inspiration from a Honda Civic, Tesla embarked on a study to glean insights into cost reduction, a page taken from their playbook in dissecting the intricacies of a vehicle whose entry-level price in the United States stands at $23,950.
This exploration forms part of Tesla's concerted effort to ameliorate its track record marred by launch delays and pricing miscalculations, a pattern notably exemplified in the tardy and cost-escalated Cybertruck production.
Despite Musk's affirmation that the cost-effective model would have its genesis at Tesla's Texas-based factory, scepticism persists.
The profit potential from more budget-friendly electric vehicles remains a formidable challenge, with the spectre of elevated battery costs and the perennial difficulties associated with producing economically viable cars.
Looking ahead, the imminent next-generation Tesla architecture, internally christened as "NV9X," is poised to unveil two or more models, as disclosed by two sources and corroborated by one of the initial informants.
Tesla's ambition to diversify its production landscape encompasses plans to manufacture cost-effective vehicles both in its Berlin-based factory and, potentially, in a nascent factory in India.
This strategic expansion aligns with Tesla's existing manufacturing hubs in Shanghai and Fremont, and the aspirations to extend its footprint into new territories.
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