At the 2023 Q3 Earnings Call, Tesla provided an update on its next-generation model, what many are referring to as the “Model 2” or “Model Q.” Although the actual model name is yet to be determined, it is known internally as Redwood.
During the 2024 Shareholder Meeting, Musk again mentioned the upcoming model, saying that Tesla is working on new products, including a more affordable vehicle and a larger SUV.
While we know the next-gen vehicle is aimed at the $25k to $30k USD market, we now have some new information thanks to a new report out of China.
Launch & Price
According to the Chinese outlet CNMO Technology News (Sina Finance), Travis Axelrod, Tesla’s Head of Investor Relations, announced plans to launch a new model. Axelrod shared this update while addressing senior corporate investors at an investor conference hosted by Deutsche Bank on December 5, 2024.
The goal of Project Redwood, internally dubbed “Model Q” by Deutsche Bank, is to achieve a post-subsidy price of under $30,000 USD. With the Federal EV Rebate potentially expiring next year, this suggests that the Model Q’s starting price will be around $30,000 USD. For comparison, the Model 3 currently starts at $42,490 in the U.S.
We previously reported that Tesla has already been speaking to suppliers and is looking to begin volume production of the vehicle sometime around June 2025. Of course, prototyping is still necessary, but we haven’t seen any signs of Tesla testing a new vehicle since spotting the Cybercab on the streets ahead of We, Robot.
Specs
The Model Q will supposedly be about 15% smaller and 30% lighter than the Model 3, with an approximate length of 3,988mm, or 157 inches. For scale, the Mini is 157 inches, while the Model 3 is 185 inches, so it’s fairly compact.
The battery will also be smaller to match the vehicle’s smaller size as Tesla tries to reduce the vehicle’s price while maintaining a similar range as its other vehicles. Tesla is expected to offer two models—a single-motor RWD model and a Long-Range Dual-Motor AWD variant.
The lower trim level will include a 53 kWh lithium iron phosphate (LFP) battery, while the AWD version is expected to include a 75 kWh LFP battery. The report says that the vehicle will be able to travel up to 500 km (310 miles) on a single charge, but it’s not clear whether this will be for the more efficient RWD version or the AWD variant.
Given the vehicle’s weight reduction compared to the Model 3, this type of range is likely for the lower trim level.
Variant
Motors
Battery Size
Estimated Range
RWD
1
53 kWh (LFP)
310 miles (500km)?
AWD
2
75 kWh (LFP)
?
There’s no news yet on the price of the AWD version, but we expect it to be about $5,000 more expensive than the RWD variant.
Once the vehicle ramps up in production, Tesla intends to produce about 10,000 of these per week globally or about 500,000 per year. As Tesla mentioned during one of their previous earnings calls, this next-gen vehicle will be built using Tesla’s current assembly lines with minimal changes. This should allow for a smoother and more predictable production ramp. While Tesla still plans to use its new unboxed assembly process, it’s now saving it for the robotaxi.
We’re expecting Juniper to launch early next year, as production has supposedly already begun at Giga Shanghai, at least on a limited prototyping basis. If the rollout matches the Model 3 Highland refresh, we’ll see Juniper arrive in China first and then make its way to North America and Europe by the end of 2025. The performance variants should launch in early 2026, after the standard models.
If you’re excited about Juniper, so are we! Check out our wishlist of features for Tesla’s Model Y refresh, and see everything we know so far.
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Tesla has always embraced whimsy in its software, packing it with playful Easter eggs and surprises. From transforming the on-screen car into James Bond’s submarine to the ever-entertaining Emissions Testing Mode and the fan-favorite Rainbow Road, these hidden features have become a signature part of Tesla’s software.
Of course, launching a new product like Robotaxi wouldn’t be complete without a fun little easter egg of its own. The end-of-ride screen in the Robotaxi app presents a familiar option “Leave a tip.”
For anyone pleased with their Robotaxi ride, they may be tempted to leave a tip. However, tapping the button presents our favorite hedgehog instead of a payment screen.
The app displays a message, alongside the familiar Tesla hedgehog, that simply states “Just kidding.”
While it's a fun prank, it’s also a nod to what Tesla really wants to do. They want to reinforce the economic advantage of an autonomous Robotaxi Network. Without a driver, there is simply no need to tip. The gesture is playful, but it’s a reminder of what Tesla’s real aim is here.
Over the last few days, we’ve seen some exceptionally smooth performance from the latest version of FSD on Tesla’s Robotaxi Network pilot. However, the entire purpose of an early access program with Safety Monitors is to identify and learn from edge cases.
This week, the public saw the first recorded instance of a Safety Monitor intervention, providing a first look at how they’re expected to stop the vehicle.
The event involved a complex, low-speed interaction with a reversing UPS truck. The Safety Monitor intervened to stop the Robotaxi immediately, potentially avoiding a collision with the delivery truck. Let’s break down this textbook case of real-world unpredictability.
The Intervention [VIDEO]
In a video from a ride in Austin, a Robotaxi is preparing to pull over to its destination on the right side of the road, with its turn signal active. Ahead, a UPS truck comes to a stop. As the Model Y begins turning into the spot, the UPS truck, seemingly without signaling, starts to reverse. At this point, the Safety Monitor stepped in and pressed the In Lane Stop button on the main display, bringing the Robotaxi to an immediate halt.
This is precisely why Tesla has employed Safety Monitors in this initial pilot. They are there to proactively manage ambiguous situations where the intentions of other drivers are unclear. The system worked as designed, but it raises a key question: What would FSD have done on its own? It’s not clear whether the vehicle saw the truck backing up, or what it would do when it finally detected it. It’s also unclear whether the UPS driver recognized that the Robotaxi was pulling into the same spot at the exact same time.
It’s possible this wouldn’t result in a collision at all, but the Safety Monitor did the right thing by stepping in to prevent a potential collision, even one at low speed. Any collision just a few days after the Robotaxi Network launch could result in complications for Tesla.
Who Would Be At Fault?
This scenario is a classic edge case. It involves unclear right-of-way and unpredictable human behavior. Even for human drivers, the right-of-way here is complicated. While a reversing vehicle often bears responsibility, a forward-moving vehicle must also take precautions to avoid a collision. This legal and practical gray area is what makes these scenarios so challenging for AI to navigate.
Would the Robotaxi have continued, assuming the reversing truck would stop?
Or would it have identified the potential conflict and used its own ability to stop and reverse?
Without the intervention, it’s impossible to say for sure. However, crucial context comes from a different clip involving, surprisingly, another UPS delivery truck.
A Tale of Two Trucks
In a separate video posted on X, another Robotaxi encounters a remarkably similar situation. In that instance, as another UPS delivery truck obstructs the path forward, the Robotaxi comes to a stop to let its two passengers out just a few feet from their destination.
Once they depart, the Robotaxi successfully reverses and performs a three-point turn to extricate itself from a tight spot. That was all done without human intervention, by correctly identifying the situation.
This second clip is vital because it proves that the Robotaxi's FSD build has the underlying logic and capability to handle these scenarios. It can, and does, use reverse to safely navigate complex situations.
Far from being a failure, this first intervention should be seen as a success for Tesla’s safety methodology. It shows the safety system is working, allowing monitors to mitigate ambiguous events proactively.
More importantly, this incident provides Tesla’s FSD team with an invaluable real-world data point.
By comparing the intervened ride with the successful autonomous one, Tesla’s engineers can fine-tune FSD’s decision-making, which will likely have a positive impact on its edge case handling in the near future.
This is the purpose of a public pilot — to find the final edge cases and build a more robust system, one unpredictable reversing truck at a time.
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