Elon Musk has disclosed that Tesla is currently aiming for its next-generation electric vehicles, which will include a much cheaper electric car, to come in late 2025.

At Tesla’s 2023 Investor Day in March, the automaker unveiled a new car manufacturing system, which CEO Elon Musk claimed would be faster, more efficient, and enable the production of cheaper electric vehicles.

Tesla is calling it the “Unboxed Process”:

The general idea is that Tesla wants to be able to work on separate sections of the vehicle individually and only bring the car together at a new “more final” assembly.

It differs from the more traditional car manufacturing model to move the entire vehicle body down a line all the way to the final assembly.

Tesla’s next-generation vehicles, a cheaper “$25,000 model” and a robotaxi, are expected to be the first to use this new system.

With the release of Tesla’s Q4 2023 earnings, Musk briefly commented on the timeline for Tesla’s next-generation vehicles.

The CEO said that Tesla’s current “tentative” internal timeline is to start production in “late 2025”. He noted that this timeline is to be taken with a grain of salt and that a lot of things can negatively affect it.

The comment came after a report from Reuters this morning alleging that Tesla was planning to bring the vehicles to production in “mid-2025”.

Musk also warned that the production ramp is going to be difficult, which is why the company decided to start production at Gigafactory Texas, where its engineering team is located, rather than the upcoming Gigafactory Mexico.

We learned from Musk’s approved biography that the next-generation vehicles will be futuristic-looking and ‘Cybertruck-like’.

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MuskWire TLDR:

Elon Musk has revealed that Tesla is targeting the release of its next-generation electric vehicles, including a more affordable model, in late 2025. During Tesla’s 2023 Investor Day, the automaker introduced a new car manufacturing system called the “Unboxed Process,” which aims to increase efficiency and enable the production of cheaper electric vehicles. This process involves working on separate sections of the vehicle individually and assembling them at a later stage, deviating from the traditional manufacturing model. Tesla’s upcoming vehicles, including a cheaper $25,000 model and a robotaxi, are expected to be the first to utilize this new manufacturing system. Musk cautioned that the production ramp would be challenging and explained the decision to commence production at Gigafactory Texas rather than Gigafactory Mexico due to the proximity to the engineering team. Musk’s approved biography also revealed that the next-generation vehicles will have a futuristic appearance similar to the Cybertruck.