Tesla has told suppliers it wants to start production of a new mass market electric vehicle codenamed "Redwood" in mid-2025, according to reports.
Would allow it to compete with cheaper gasoline-powered cars and a growing number of inexpensive EVs, such as those made by China's BYD.
BYD overtook Tesla as the world's top EV maker in the final quarter of 2023.
Musk first promised to build a $25,000 car in 2020, a plan he later shelved and revived. Tesla's cheapest offering, Model 3 sedan, currently has a starting price of $38,990 in US.
Tesla sent "requests for quotes," or invitation for bids for the "Redwood" model, to suppliers last year. Production would begin in June 2025.