(RightWing.org) – Experts are arguing if electric vehicles (EVs) are the future, or if the extra demand they put on the power grid is too high a barrier. Meanwhile, most Americans are seeing a more immediate barrier — price. Market leader Tesla’s cheapest EV starts at $43,900, and while other manufacturers offer cheaper models, they’re still more expensive than conventional cars. Now Tesla wants to change that, by introducing a more affordable model.
On January 24, Reuters reported that Tesla is working on plans to bring out a new entry-level EV, codenamed Redwood, next year. CEO Elon Musk confirmed that production will start at the company’s Texas factory in the second half of 2025. Musk also warned that sales growth is likely to fall sharply this year — and in fact, sales of the cheapest Tesla, the Model 3, already dropped by 15% last year.
Musk’s plan is that Redwood will turn declining sales around. The new EV will sell for around $25,000, making it the cheapest electric car on the market — and Musk wants to make 10,000 of them a week. That’s an ambitious goal, but can the company achieve it? Market analysts have their doubts, pointing out that despite Tesla’s success its products have a habit of arriving later and costing more than originally planned.
With the economy still struggling, there’s no doubt the high cost of EVs is putting off many buyers. When a Honda Civic costs less than $24,000 and can be filled up at any gas station, why pay almost twice as much for an electric car that needs specialized charging points and has a shorter range in cold weather? Chinese manufacturers are already producing cheaper vehicles. It looks like Redwood is Tesla’s attempt to compete at the lower end of the EV market.
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