Elon Musk has officially announced the development of a “next-generation low-cost” Tesla electric vehicle (EV) with optimism that it will be available in the second half of 2025. Musk reiterated his commitment to introducing a “revolutionary manufacturing system” for the upcoming vehicle, claiming it will surpass existing systems globally by a “significant margin.”

The upcoming vehicle is expected to be a small crossover codenamed “Redwood,” as per reports from Reuters. Tesla has reportedly reached out to suppliers for quotes, anticipating a weekly production volume of 10,000 vehicles. Musk had previously mentioned that Tesla is working on two new EV models with the potential to sell up to 5 million units per year combined.

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Production of the “Redwood” is scheduled to begin towards the end of 2025, initially at Tesla’s Austin, Texas Gigafactory, with expansion to other locations worldwide later. Musk emphasized a strong push to accelerate assembly, stating, “We’ll practically be sleeping on the line.”

Musk hinted at the difficulty of replicating Tesla’s new manufacturing technique, describing it as “very hard to copy” due to the intricate nature of copying the machine that makes the machine that makes the machine—an approach he referred to as “manufacturing inception.” He suggested that the new production line might start at a slower pace before witnessing a significant ramp-up in production, similar to previous processes.