Tesla has told suppliers it wants to start production of a new mass market electric vehicle (EV) codenamed "Redwood" in mid-2025, according to four people familiar with the matter, with two of them describing the model as a compact crossover, Reuters reported.

Those models, including an entry-level $25,000 car, would allow it to compete with cheaper gasoline-powered cars and a growing number of inexpensive EVs, such as those made by China's BYD, which overtook Tesla as the world's top EV maker in the final quarter of 2023..

Tesla forecasts weekly production volume of 10,000 vehicles, two of the sources said.