Tesla has informed its suppliers of plans to start producing a new mass-market EV, codenamed "Redwood," by mid-2025. Reuters broke the news less than 24 hours before Tesla’s call with shareholders. The media outlet used information from four sources “familiar with the matter,” with two describing the model as a compact crossover.
This can only be the $25,000 car, also known as the Model 2 or Next Gen. It’s not the first time that we’ve heard rumors of it being a smaller Model Y. The next-generation Tesla architecture, internally known as 'NV9X', is said to include at least two models. Tesla’s Master Plan suggested that there would be infinite demand for the less expensive car, projecting its fleet could match all of the other models combined.
Next Model in 2025
Tesla has approached suppliers requesting quotes for the "Redwood" model, forecasting a weekly production volume of 10,000 vehicles. Production is slated to begin in June 2025, according to three sources who spoke anonymously due to the confidential nature of the information. However, the fourth downplayed the timeline, stating that most of Tesla's new product launches have been overly optimistic, with volume output more likely to start in 2026.
Sources also revealed that Tesla has recently dismantled a Honda Civic, priced at $23,950 in the U.S., to study methods of producing more affordable cars.
Concept of Next Gen
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One of the most upvoted queries from investors, ahead of Tesla's fourth quarter and year-end report, concerned the timing of the next-gen compact vehicles, and for good reason. Tesla fell behind BYD as the world’s leading EV producer in the last quarter of 2023. Add that to the new push to gas-powered cars thanks to a refreshed attack on EVs since the Big 3’s labor strife. Tesla must put its shareholders at ease addressing these factors head-on, precisely what a mass market, less expensive vehicle would do.
The Long History of the Cheaper Tesla
Musk initially promised a $25,000 car in 2020, a plan he later paused and reinstated. Tesla's most budget-friendly model, the Model 3 sedan, currently has a starting price of $38,990 in the United States. In the previous year, Musk commented on the sensitivity of high-ticket items, such as cars, to rising interest rates among consumers. In May, Musk revealed that Tesla was developing two new products, potentially unveiled within the year, with a combined annual sales potential of 5 million vehicles.
During Tesla's shareholders meeting, he emphasized, "Both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in this industry." Walter Isaacson's biography of Musk hints at the more affordable car and the Robotaxi based on the same vehicle architecture. There was even a picture that gave away several clues.
Picture from Elon Musk Biography
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Last March, Musk and other Tesla executives outlined plans to halve the cost of their next-generation vehicles, although a specific timeframe for these launches was not provided. About a year ago, chief designer Franz von Holzhausen said that the car he is most excited about is the one he is currently working on but could not talk about.
Musk stated last year that the affordable model would initially be manufactured at Tesla's factory in Texas. Additionally, Tesla plans to manufacture more affordable cars at its plant near Berlin and has expressed interest in establishing a factory in India to produce smaller, cheaper electric cars.
While Tesla supports a variety of music streaming services, including YouTube Music, Apple Music, and Spotify, there may be times you want to listen to music from a local USB drive.
While Bluetooth is also an option, it’s limited to what’s available on your phone and the lower streaming quality of Bluetooth.
In this guide, we’ll go through the benefits of having music on a USB drive and how to set it all up.
Benefits of Music on a USB Drive
Having music stored locally has several benefits. First is audio quality; since you’re under full control of the bitrate of the content, you can encode or buy music at much higher quality when compared to steaming content from Spotify or another streaming service. Tesla even supports FLAC’s lossless audio, letting you experience the best audio experience in your vehicle.
Local music also doesn’t require an internet connection, so if you frequently traffic through areas with a spotty connection, you may prefer to have music locally on hand.
While streaming content is convenient, you can be limited by the content that’s offered. If you prefer foreign music or other music that’s not available on a music service that Tesla supports, local content could be a great option.
Lastly, having music on a USB drive is a great option if you don’t subscribe to a music streaming service or don’t pay for Premium Connectivity in your Tesla.
Step 1: Use the Right USB Port
Not all USB ports in a Tesla support data transfer. While some models have USB data ports in the rear console or center console, they do not support media playback and can only be used to charge a device.
Instead, your best bet is to use the USB port inside the glovebox, which is designed for both dashcam video storage and music playback. While some vehicles may also support data transfer through the USB ports in the front console, not all of them do. Older vehicles may not have a USB port in the globebox, and you’ll be limited in using the USB ports in the console.
Important: You cannot play music from a phone, tablet, or external music player over USB—only from a properly formatted USB storage device.
Step 2: Format Your USB Drive
Every new Tesla comes with a high-speed USB drive pre-installed in the glovebox, formatted for Sentry Mode and Dashcam storage. If your vehicle didn’t come with one, or you want to use a larger or separate drive for Sentry Mode or music, you’ll need to format it first.
How to Format a USB Drive in Your Tesla
Insert your USB drive into the desired USB port.
Navigate to Controls > Safety > Format USB Drive
Wait a few seconds (it may take longer for large drives), and the system will format the drive and create the necessary folders (e.g., for Sentry Mode and Track Mode).
💡 Tip: Use a high-speed, high-capacity SSD for the best experience. Regular flash drives work, but SSDs provide faster loading times and more capability.
Step 3: Add Your Music
Once your USB drive is formatted, unplug the USB drive from your Tesla and connect it to your computer to add your music files.
Organizing Your Music:
Create a folder called Music at the top level of the USB drive. All music must be added to this folder.
You can organize the music however you prefer, and you’ll be able to view the folders in the vehicle when selecting music. Most users prefer to have folders that include the name of the artist with subfolders for the album name, but how you organize the content is completely up to you.
If your music files content metadata such as song title, artist, album, etc, it will automatically be displayed in Tesla’s media player.
Supported Audio Formats
Tesla’s music player supports a variety of audio formats, including wave, MP3, and FLAC (lossless), but it does not support AAC (Apple's iTunes format). If you have AAC files, you can convert them to MP3 or FLAC before transferring them.
Step 4: Play Your Music
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Once you’ve transferred your music, you can bring it back to your Tesla.
Insert the USB drive into the front console or glovebox port.
You’ll now have a new app under the all apps menu called USB.
The USB app will let you view all of your supported audio content on the USB drive. You’ll be able to view the content by song, artist, album, genre, and folder structure.
First-time indexing of audio content may take a few seconds (longer for larger drives). Tesla re-indexes the drive every time the car wakes from sleep, so keeping the total file size under 30GB ensures faster access.
Voice Commands and Search
While music stored on the USB drive will behave much like other content that’s played over streaming services, there are a few limitations.
Voice commands can not be used to play a specific song or artist from your USB drive. If you ask the vehicle to play any content, it’ll default to one of the music services.
Music search is also not supported. While search will show content from all music services that aren’t hidden, it will not include music from your USB drive.
Enjoy the Best Sound Tesla Has to Offer
Tesla’s audio system is meticulously engineered for a premium sound experience, and playing lossless audio over USB takes full advantage of that. If you’re an audiophile, this setup ensures you hear your music in its purest form—no compression, no interference, just crystal-clear sound.
Another month brings another exciting update packed with Cybertruck news. Grab your stainless steel mug and join us as we dive into the latest developments, from new features to upcoming products—all things Cybertruck.
This recap covers news from early January to early February, keeping you updated on the latest updates and what’s coming next for the Cybertruck.
Off Road Armor & Rockers Coming Soon
The prototype Off Road Armor in all its glory.
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Back in 2024, Wes Morril (Cybertruck’s Lead Engineer) and Siddhant Awasthi (Cybertruck’s Program Manager) teased the arrival of off-road armor, expected to launch for customer purchase in Winter 2024. Unfortunately, that hasn’t materialized.
But there’s good news. Wes recently showcased the prototype off-road armor and side rockers, confirming they’re on the way. Tesla plans to add them to the store by the end of March. Pricing details are still unknown, but since this armor covers the entire underbody of the Cybertruck, it’s safe to assume it won’t come cheap.
Wheel Cover Supply Confirmed
Tesla has been working hard to get Cybertruck wheel covers to early owners. While new deliveries now come with them pre-installed, some customers— including those who received their Cybertrucks as far back as March 2024—are still waiting.
According to Siddhant Awasthi, Tesla has secured a supply of the covers, but distribution remains a challenge. So far, about 32% of eligible owners have received theirs, with more shipments on the way.
In the meantime, Tesla is offeringcomplimentary Cyber Wheel Caps to owners still waiting for their covers. These will be sent out for free, with email notifications already rolling out.
Air Suspension Controls and Improvements
Strangely, the Cybertruck still lacks the ability to control vehicle height from the app—a feature that would be incredibly useful for off-roading and just cool to have in general.
The good news is that Siddhant Awasthi recently hinted that improvements to the air suspension controls are on the way, along with other unannounced feature upgrades.
Could this mean more advanced vehicle leveling, finer height adjustments, or even the ability to drive in High mode at faster speeds? We’ll have to wait and see, but we’re definitely excited to find out.
Cold Weather Update Delayed
The Cybertruck continues to face regen and charging issues, and although a fix may arrive in update 2025.2, that update has yet to hit the Cybertruck.
We reached out to Tesla Service for an update. While they previously stated the fix would land in 2025.2, they now say it’s “coming soon,” so it’s unclear whether we’ll even get those fixes this winter.
RWD Cybertruck Coming Soon, EV Rebate Available Now
In case you missed it, the RWD Cybertruck is expected to arrive soon, and the Dual Motor variant now qualifies for the Federal EV Rebate in the U.S.
The RWD model will likely launch with a few feature omissions, including:
• A manual tonneau cover instead of an automatic one
• Potentially optional PowerShare functionality
• Internal and rear AC outlets may also be missing