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Elon Musk references a “revolutionary” late 2025 production start for EV brand’s new low-cost small car and SUV

Tesla CEO Elon Musk has outlined a 2025 production start for the all-electric car-maker’s upcoming “next-generation low-cost vehicle”, and confirmed the new model will initially be produced at Giga Texas before being outsourced to other plants around the world.

Musk made the announcement overnight during an investor’s earnings call and said the manufacturing processes set to be employed for Tesla’s new entry-level model/s will be revolutionary and head and shoulders above any other vehicle production on the planet.

Tesla is reportedly working on compact crossover EV codenamed “Redwood” with production set to start in June 2025, sources familiar with the matter told Reuters. The company is said to have sent requests for quotes for the new model to suppliers last year, predicting a weekly production volume of 10,000 vehicles.

Elon Musk has confirmed that a “next-generation low-cost” Tesla EV is in the works and is “optimistic” that it’ll arrive in the second half of 2025, he said in an earnings call yesterday. He also promised “a revolutionary manufacturing system” for the vehicle that’s far more advanced than any others in the world by a “significant margin.”

An article yesterday from Reuters indicated that the new vehicle would be a small crossover codenamed “Redwood.” Tesla reportedly sent requests to suppliers for quotes, predicting a weekly production volume of 10,000 vehicles. Musk previously stated that the automaker is working on two new EV models that could sell up to 5 million per year, combined.

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Elon Musk acknowledges Chinese EV dominance globally, expressing concerns about Tesla’s competition as Chinese makers make strides in the global market.

Tesla CEO, Elon Musk, confirmed during the company’s latest earnings call that it would start production on its next EV in mid-2025 which could start at $25,000.

As Pedro Pacheco of Gartner, another consultancy, points out, Chinese firms are also managed differently. They are less risk averse and move faster than foreign firms, quickly updating tech and introducing new models to keep customers interested. Treating new cars like consumer-tech products, such as smartphones, extends to ditching duds quickly. Li Auto now ceases production of new models in a matter of months if they do not sell well.

EV startups such as Li Auto, NIO and Xpeng were all founded by tech billionaires who, like Tesla’s Elon Musk, regard their firms as tech companies that happen to make cars. In fact, lots of Chinese tech firms are getting involved in the car industry. Whereas Apple has mulled such a venture long and indecisively, Xiaomi, a big Chinese smartphone-maker, unveiled its first vehicle in December (a fancy and expensive saloon). It plans to make cheaper models in future with the immodest goal of becoming one of the world’s top five carmakers in 15–20 years. Huawei, a telecoms firm, and Baidu, a search engine, have also teamed up with car firms to make vehicles.

Elon Musk said on X he was “uncomfortable” about increasing the EV maker’s AI and robotics capabilities without controlling at least 25% of the votes.

Elon Musk posted a video of Optimus doing a basic household chore, but there’s a catch.

Tesla CEO Elon Musk posted on X a video of the robot Optimus taking a shirt out from a small laundry bag and then folding it. But there’s a catch.

We are already living in the era of the fourth industrial revolution, but in the near future we will be facing another one that could really change everything. We are talking about the revolution of humanoid robots — versatile, intelligent and dexterous machines that can not only help, but also replace humans in tight places. In this video, we’ll tell you about the top 10 newest and most advanced humanoid robots in the world, and what technologies will make them truly versatile! Onward to a brighter future)

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The colossal rocket from Elon Musk’s space company which aims to take humans to Mars and beyond, soared to the edge of space in its second integrated test flight in mid-November.

However, the historic flight had its challenges. The Starship and the Super Heavy booster exploded in mid-air shortly after the stage separation, creating spectacular fireballs that lit up the sky. The cause of the mishaps was unclear, and many speculated that the flight termination system, a safety mechanism that destroys the rocket if it deviates from the planned trajectory, was triggered.

Two months later, SpaceX founder and CEO Elon Musk finally shed some light on what happened during a company update presentation at Starbase, the launch site and production facility for Starship. He revealed that the world’s heaviest rocket was too light to reach orbit.

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