Tesla plans to build sub £25,000 'Redwood' EV in 2025

Tesla CEO Elon Musk has confirmed that the electric car maker plans to start production of its next EV - codenamed Redwood - in the second half of 2025.

The future car – which could be called the Tesla Model 2 in production – is tipped to cost less than £25,000 when it goes on sale in the UK.

Tesla has long stated its desire to create an entry-level model, with Musk initially mooting a $20,000 EV back in 2020.

In 2023, he told shareholders that Tesla was developing “two new products”, one the recently launched updated Tesla Model 3 and the other the Redwood project.

Speaking at the American company's 2023 earnings report yesterday (24 January), Musk said he's "often optimistic" about the new car reaching production as scheduled.