During Tesla’s Q4 2023 earnings call, CEO Elon Musk outlined the company’s ambitious plans for its next-generation electric vehicle (EV). Musk revealed that the production of this cutting-edge vehicle is slated to begin towards the end of 2025, marking a pivotal moment in Tesla’s growth trajectory.
Responding to a question about the timeline for the next-generation compact vehicle, Musk, known for his optimistic outlook, cautiously stated, “our current schedule shows that we will start production towards the end of 2025.” He emphasized that this timeline should be taken with a grain of salt due to the revolutionary manufacturing technology involved.
Reuters previously reported this was the case and it seems Musk is confirming what was said this week. The next-gen platform is allegedly codenamed ‘Redwood’.
Musk highlighted the strategic decision to locate the production of this next-gen vehicle at Gigafactory Texas. The move is driven by the need for Tesla engineers to be intimately involved with the production line, a necessity given the novel and complex nature of the manufacturing technology. This proximity will allow for more direct oversight and quicker problem-solving.
The Tesla CEO candidly admitted the challenges ahead, noting that the production ramp would be demanding and that it would require a hands-on approach, to the extent of the team “sleeping on the line.” Despite the anticipated hurdles, Musk expressed confidence in the superiority of Tesla’s new manufacturing technology, asserting that it will be “head and shoulders above any other manufacturing technology that exists anywhere in the world.”
Musk described the typical S-curve of manufacturing, starting slow and growing exponentially. However, he refrained from making predictions about the unit volume for the next year, acknowledging the difficulty in forecasting the ramp-up phase.
Additionally, Tesla’s shareholder slide deck revealed the company’s focus on bringing the next-generation platform to market as swiftly as possible, with production planned to start at Gigafactory Texas. The next-gen platform, currently noted as “in development” (just like the new Roadster), is expected to revolutionize how vehicles are manufactured.
Tesla is poised at a critical juncture, transitioning between two major growth waves. The first wave was propelled by the global expansion of the Model 3/Y platform, and the forthcoming wave is anticipated to be driven by the global expansion of the next-generation vehicle platform. This step signifies Tesla’s continual push towards innovation and leadership in the electric vehicle sector.
