Tesla to start making cheap car next year: sources

Watch Tesla to start making cheap car next year: sources - Guardian Nigeria on Dailymotion

Transcript

00:00 Tesla cars could soon be getting more affordable. Reuters sources say the firm has told suppliers

00:07 it wants to start mass production of a cheaper model in mid-2025. Two of the sources describe

00:14 the vehicle as a "compact crossover". Right now Tesla's cheapest car is the Model 3, which

00:21 starts at just under $39,000 in the US, but boss Elon Musk has long vowed to deliver a

00:28 much cheaper vehicle. He's promised to make one that can be sold at $25,000.

00:35 That plan may now be more urgent. Tesla faces mounting competition from rivals like BYD,

00:42 which can undercut it on price. The Chinese firm overtook Musk's company as the world's

00:47 top maker of EVs in the final quarter of last year. High interest rates are another worry.

00:54 They could crimp demand for relatively expensive cars like Tesla's.

00:59 Now the Reuters sources say a model codenamed "Redwood" is being prepared for its debut.

01:05 They say Tesla has contacted suppliers about parts. It has forecast weekly production of

01:11 10,000 units, with output to begin in June next year. However, analysts warn the firm

01:17 has a long history of missing targets for launch dates and pricing.

01:22 The firm didn't comment on the reports, but Musk did say last year that Tesla was working

01:27 on two new products with a potential for combined sales of 5 million units per year.

01:33 [BLANK_AUDIO]