Tesla has informed its suppliers of plans to start producing a new mass-market EV, codenamed "Redwood," by mid-2025. Reuters broke the news less than 24 hours before Tesla’s call with shareholders. The media outlet used information from four sources “familiar with the matter,” with two describing the model as a compact crossover.
This can only be the $25,000 car, also known as the Model 2 or Next Gen. It’s not the first time that we’ve heard rumors of it being a smaller Model Y. The next-generation Tesla architecture, internally known as 'NV9X', is said to include at least two models. Tesla’s Master Plan suggested that there would be infinite demand for the less expensive car, projecting its fleet could match all of the other models combined.
Next Model in 2025
Tesla has approached suppliers requesting quotes for the "Redwood" model, forecasting a weekly production volume of 10,000 vehicles. Production is slated to begin in June 2025, according to three sources who spoke anonymously due to the confidential nature of the information. However, the fourth downplayed the timeline, stating that most of Tesla's new product launches have been overly optimistic, with volume output more likely to start in 2026.
Sources also revealed that Tesla has recently dismantled a Honda Civic, priced at $23,950 in the U.S., to study methods of producing more affordable cars.
Concept of Next Gen
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One of the most upvoted queries from investors, ahead of Tesla's fourth quarter and year-end report, concerned the timing of the next-gen compact vehicles, and for good reason. Tesla fell behind BYD as the world’s leading EV producer in the last quarter of 2023. Add that to the new push to gas-powered cars thanks to a refreshed attack on EVs since the Big 3’s labor strife. Tesla must put its shareholders at ease addressing these factors head-on, precisely what a mass market, less expensive vehicle would do.
The Long History of the Cheaper Tesla
Musk initially promised a $25,000 car in 2020, a plan he later paused and reinstated. Tesla's most budget-friendly model, the Model 3 sedan, currently has a starting price of $38,990 in the United States. In the previous year, Musk commented on the sensitivity of high-ticket items, such as cars, to rising interest rates among consumers. In May, Musk revealed that Tesla was developing two new products, potentially unveiled within the year, with a combined annual sales potential of 5 million vehicles.
During Tesla's shareholders meeting, he emphasized, "Both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in this industry." Walter Isaacson's biography of Musk hints at the more affordable car and the Robotaxi based on the same vehicle architecture. There was even a picture that gave away several clues.
Picture from Elon Musk Biography
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Last March, Musk and other Tesla executives outlined plans to halve the cost of their next-generation vehicles, although a specific timeframe for these launches was not provided. About a year ago, chief designer Franz von Holzhausen said that the car he is most excited about is the one he is currently working on but could not talk about.
Musk stated last year that the affordable model would initially be manufactured at Tesla's factory in Texas. Additionally, Tesla plans to manufacture more affordable cars at its plant near Berlin and has expressed interest in establishing a factory in India to produce smaller, cheaper electric cars.
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Tesla’s Cybertruck has officially earned a 5-Star Safety Rating from the NHTSA—an impressive achievement given the vehicle’s design. The achievement demonstrates Tesla’s engineering prowess. As one engineer points out, it wasn’t an easy feat.
Interestingly, the NHTSA only recently disclosed the results, despite the crash tests being completed a while ago. According to Lars Moravy, Tesla’s VP of Vehicle Engineering, the team had been aware of the 5-star rating for quite some time. While the reason for the delay remains unclear, now that the results are public, Tesla’s engineers can finally share how they achieved the rating.
Crumple Zones
Wes Morril, the Cybertruck’s Lead Engineer, wrote about the crash test video on X recently, addressing the claims that the Cybertruck doesn’t have a crumple zone. He also posted a side-by-side video (below) of the engineering analysis and the crash test itself.
Engineered Crash Safety
There’s a lot of engineering precision at play when a Cybertruck is involved in a crash. Unlike traditional crash structures that rely on crash cans and collapse points, the Cybertruck’s front gigacasting is designed to absorb and redirect impact forces in a highly controlled manner.
It all starts with the bumper beam, which crushes within the first few milliseconds of a high-speed impact. At the same time, the vehicle’s sensors rapidly analyze the crash dynamics and determine the optimal deployment of safety restraints, including airbags and seat belt pre-tensioners. These split-second actions are crucial in keeping occupants safe.
As the crash progresses, the vehicle’s structure deforms in a carefully engineered sequence. The drive unit cradle bends, directing the solid drive unit downward and out of the way, allowing the gigacasting to begin absorbing impact forces.
The casting crushes cell by cell, methodically dissipating energy in a controlled manner. This gradual deceleration reduces the g-forces transferred to occupants, making the crash much less severe. As the gigacast begins crushing, the safety restraints are deployed.
As Wes points out in his post - you can see how accurate the virtual analysis and modeling were. The video shows the simulated crash side by side with the real-life crash test and they’re almost identical. All that virtual testing helps provide feedback into the loop to design a better and safer system - one that is uniquely different than any other vehicle on the road.
All the armchair experts claimed the Cybertruck has no crumple zone and I get it, the proportions seem impossible. It was a tough one and there is a lot of engineering that went into it. Let me break it down for you:
Tesla has pioneered the use of single-piece castings for the front and rear sections of their vehicles, thanks to its innovative Gigapress process. Many automakers are now following suit, as this approach allows the crash structure to be integrated directly into the casting.
This makes the castings not only safer but also easier to manufacture in a single step, reducing costs and improving repairability. For example, replacing the entire rear frame of a Cybertruck is estimated to cost under $10,000 USD, with most of the expense coming from labor, according to estimates shared on X after high-speed rear collisions.
These insights come from Sandy Munro’s interview (posted below) with Lars Moravy, Tesla’s VP of Vehicle Engineering, highlighting how these advancements contribute to the improvements in Tesla’s latest vehicles, including the New Model Y.
However, with the new Model Y, Tesla has decided to go a different route and eliminated the front gigacast.
No Front Casting
Tesla’s factories aren’t equipped to produce both front and rear castings for the Model Y. Only Giga Texas and Giga Berlin used structural battery packs, but these were quickly phased out due to the underwhelming performance of the first-generation 4680 battery.
Tesla has gone back to building a common body across the globe, increasing part interchangeability and reducing supply chain complexity across the four factories that produce the Model Y. They’ve instead improved and reduced the number of unique parts up front to help simplify assembly and repair.
There is still potential for Tesla to switch back to using a front and rear casting - especially with their innovative unboxed assembly method. However, that will also require Tesla to begin using a structural battery pack again, which could potentially happen in the future with new battery technology.
Rear Casting Improvements
The rear casting has been completely redesigned, shedding 7 kg (15.4 lbs) and cutting machining time in half. Originally weighing around 67 kg (147 lbs), the new casting is now approximately 60 kg (132 lbs).
This 15% weight reduction improves both vehicle dynamics and range while also increasing the rear structure’s stiffness, reducing body flex during maneuvers.
Tesla leveraged its in-house fluid dynamics software to optimize the design, resulting in castings that resemble organic structures in some areas and flowing river patterns in others. Additionally, manufacturing efficiency has dramatically improved—the casting process, which originally took 180 seconds per part, has been reduced to just 75 seconds, a nearly 60% time reduction per unit.
Advancements in die-casting machines and cooling systems have allowed @Tesla to dramatically reduce cycle times and improve dimensional stability. pic.twitter.com/WB5ji67rvV
Tesla’s new casting method incorporates conformal cooling, which cools the die directly within the gigapress. Tesla has been refining the die-casting machines and collaborating with manufacturers to improve the gigapress process.
In 2023, Tesla patented a thermal control unit for the casting process. This system uses real-time temperature analysis and precise mixing of metal streams to optimize casting quality. SETI Park, which covers Tesla’s manufacturing patents on X, offers a great series for those interested in learning more.
The new system allows Tesla to control the flow of cooling liquid, precisely directing water to different parts of the die, cooling them at varying rates. This enables faster material flow and quicker cooling, improving both dimensional stability and the speed of removing the part from the press for the next stage.
With these new process improvements, Tesla now rolls out a new Model Y at Giga Berlin, Giga Texas, and Fremont every 43 seconds—an astounding achievement in auto manufacturing. Meanwhile, Giga Shanghai operates two Model Y lines, delivering a completed vehicle every 35 seconds.
![A Look at the Tesla Cybertruck’s Crumple Zones [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/cybertruck/cybertruck-crash-test.webp/e43ef2433bd6e44ae8db63421604a4fb/cybertruck-crash-test.jpg)
