Elon Musk's Tesla has announced the launch of its Redwood Project, aiming to produce a new compact crossover model starting June 2025. This comes as the company experiences a significant rise in stock value, reaching a historic high of $415 last week, surpassing its previous peak of $141.50 from over three years ago.
The surge in Tesla's stock, which has increased nearly 65% since the November 5 elections, is attributed to investor optimism regarding Musk's ongoing relationship with U.S. President-elect Donald Trump. In a recent report, Tesla China revealed it sold 21,900 electric vehicles in the first week of December, marking the highest weekly sales for Q4.
Following this news, Tesla's shares rose by 3.1% to $413.26. The Redwood model is speculated to align with rumors of a $25,000 Tesla, although the final pricing remains unclear. The new electric vehicle platform is expected to significantly lower production costs, potentially making the Redwood the most affordable model to date, competing directly with Chinese electric vehicle manufacturers like BYD.
Tesla aims to increase production to 10,000 units weekly, translating to an annual output of half a million vehicles. This ambitious plan follows a 35% increase in production last year, reaching 1.85 million vehicles. CEO Musk indicated that upcoming products could enable annual sales of 5 million vehicles.
The Redwood will be manufactured at Tesla's Texas facility before expanding production globally. This initiative positions Tesla to challenge competitors' hydrogen strategies and sets a clear vision for the future of electric vehicles.