EV major Tesla (NASDAQ:TSLA) could be planning an affordable electric vehicle codenamed “Redwood” in mid-2025, according to a Reuters report. This could be part of CEO Elon Musk‘s plan for cheaper EVs, including a $25,000 car.
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The report stated that such an entry-level car, priced at $25,000, could enable TSLA to compete with gasoline-powered cars and cheaper EVs produced by Chinese companies like BYD (BYDDY). Production of this cheaper EV is expected to begin in the middle of 2025, with a weekly production forecast of 10,000 vehicles.
Musk had first committed to a $25,000 car in 2020, a plan that was later shelved and then revived. Tesla’s cheapest EV, the Model 3 sedan, has a starting price of $38,990 in the U.S.
Tesla is expected to report its fourth-quarter earnings on January 24.
Is TSLA a Good Stock to Buy?
Analysts remain sidelined about TSLA stock with a Hold consensus rating based on nine Buys, 11 Holds, and four Sells. Over the past year, TSLA has gone up by more than 40%, and the average TSLA price target of $244.05 implies an upside potential of 16.7% at current levels.
