Reuters Tesla expects to start production of its nextgeneration electric vehicle at its Texas factory in the second half of 2025, Chief Executive Elon Musk said on Wednesday, after warning of a sharp slowdown in sales growth this year.

But Tesla shares were down 6 in afterhours trading as Musk noted that ramping up production of the new vehicle would be challenging. Musk said it would take a tremendous amount of new revolutionary manufacturing technology required a sign that any boost to Tesla39;s declining pace of growth would take time.

His projection followed a Reuters story earlier in the day saying Tesla had told suppliers to prepare for a June 2025 startup of a smaller crossover vehicle, critical for the automaker as it loses share to inexpensive EVs such as those made by China39;s BYD.

I39;m often optimistic regarding time. But our current schedule shows that we will start production towards the end of 2025, sometime in the second half, Musk told analysts on a postearnings call.

We39;ll be sleeping on the line practically, he said, referring to Tesla39;s factory in Texas, where the new model will be first produced. That will be followed by Mexico and another factory outside North America to be decided later this year, he said.

The EV maker also warned of notably lower sales growth this year as it focuses on the new vehicle after it reported shrinking fourthquarter gross margin.

Tesla said it was in between two growth waves one driven by the release of…