Tesla announced that its next-generation vehicle is slated to begin production in the second half of 2025.
This new vehicle is designed to make Tesla’s offerings more accessible to a wider customer base, representing a fresh start with brand-new production facilities. It’s expected to be a major driver of Tesla’s continued expansion.
CEO Elon Musk shared this production timeline during the Q4 2023 and Full Year 2024 Earnings Call. While whispers circulate about a potential codename, “Redwood,” information about the vehicle remains limited.
Tesla has previously hinted at a Robotaxi-focused vehicle devoid of human controls, but it’s not yet clear whether this next-generation vehicle will feature full autonomy. The focus appears to be on affordability, a key strategy for Tesla’s future growth.
Tesla anticipates a period of slower volume growth in the immediate future, as stated in its Q4 2023 and Full-Year Earnings Shareholder Deck: “Our company is currently between two major growth waves: the first one began with the global expansion of the Model 3/Y platform and the next one we believe will be initiated by the global expansion of the next-generation vehicle platform. In 2024, our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas.”
Tesla emphasized its commitment: “We are focused on bringing the next-generation platform to market as quickly as we can, with the plan to start production at Gigafactory Texas. This platform will revolutionize how vehicles are manufactured.” This strategic move is expected to fuel increased production and sales in the long run.
Musk anticipates challenges in bringing the next-generation vehicle to production, drawing parallels to the Model 3 launch. He even stated that employees may find themselves working around the clock, potentially “sleeping” at the production lines when manufacturing commences.
