Tesla,
the electric-vehicle company run by CEO Elon Musk, plans to start production of a new model aimed at the mass market, Reuters reported, citing unidentified people familiar with the plans.
The EV has the code name “Redwood” and is slated to start being made in mid-2025, according to the report. The move would address the appetite for affordable EVs, whereas
Tesla
is now mainly a luxury brand.
Tesla reports earnings later today. The stock rose 1.5% in premarket trading to $212.25. Coming into the session, it has gained about 50% over the past 12 months.
Offering cheaper EVs would put Tesla in a better position to compete with Chinese rival
BYD,
which overtook the company to become the top EV maker in the fourth quarter. The new model would feature an entry-level price of $25,000, compared with the current cheapest Tesla Model 3, which starts at $38,990, Reuters said.
Tesla didn’t immediately respond to a request for comment early Wednesday.
BYD shares rose 1.2% in Hong Kong trading.
Rivian,
another EV rival, was up 1.5%.
Ford,
which has also started making EVs, was up 0.2%, as was
General Motors.
S&P 500
futures gained 0.4%.
Write to Brian Swint at [email protected]
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