Tesla said that its next-generation vehicle will begin production in the second half of 2025.
Tesla’s next-generation vehicle is set to help the automaker enter a new pricing point that will be accessible to more customers. It will be a completely new vehicle with new production lines and is expected to help Tesla continue its growth.
Tesla anticipates the next-generation vehicle to enter production sometime in the second half of 2025, CEO Elon Musk said on the Q4 2023 and Full Year 2024 Earnings Call.
While rumors of “Redwood,” a supposed codename of its next-generation vehicle, have started to spread, the details on the vehicle are relatively slim. Tesla has long discussed the idea of introducing a Robotaxi-based vehicle that would be void of human controls, but it is not necessarily clear if this next-gen vehicle will be geared toward full autonomy.
Instead, it seems the new car is more geared toward affordability, which is Tesla’s key to more growth moving forward.
In the short term, Tesla is expecting to take a ‘notable’ hit on volume growth rate. It stated this 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.”
Additionally, Tesla said:
“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.”
In the long term, this will lead to more growth in terms of production and sales.
Musk anticipates a tough road ahead for the production of the next-generation vehicle. The CEO is no stranger to being on the lines himself, as he frequently brings up the Model 3 ramp. It seems he expects a similar challenge with this vehicle, as he said employees will literally “be sleeping” on production lines when manufacturing begins.
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