In June 2021, Tesla released the Model S Plaid, which was the fastest series-produced car (0-60 mph) and made a big statement in the car industry. In 2023, at a special event, the Tesla Model 2 might be shown for the first time. Over the next few years, it plans to push the limits at the bottom of its line-up, not in terms of speed and performance, but in terms of price.
Tesla will release an electric car with a price tag of USD 25,000 (EUR 23,594) this decade. This was confirmed at its 2020 Annual Shareholder Meeting and Battery Day. This will make electric cars truly accessible to everyone.
Here is what has been said or written about Tesla Model 2 plan to make cars for the mass market. This article also has unofficial renderings of the small Tesla made by automotive designers and sleuths. There are also guesses about the technology, such as the chemistry of batteries, in the story.
It will have a price tag of less than $30,000
In theory, you could get a Model 3 for $35,000. However, the base model costs $43,000 today. After tax credits and gas savings, Tesla says on their website that this is “really” about $29,000 in California. They don’t count savings on maintenance in that.
They already think that a Model 3 is cheaper to own than a Corolla, but it costs more to buy and less to run.
On this chart, we can see that Tesla has said they expect the total cost of ownership for the Model 3 over the first 60,000 miles (5 years) to be exactly 71% of that for the Model 3. That includes about $2,000 for electricity and very little maintenance, like 1.5 to 2 sets of tires at $800 each and a few other small things. These shouldn’t be too different between the two cars, but the smaller one might be a little lighter and have cheaper tires. Registration fees, insurance, and, most of all, depreciation will be the other big costs.
How good a car?
If it costs this much, it must be bad, right? Even though the base Chevy Bolt is less than this price range, it doesn’t come close to the Model 3, which sells much more even though it costs much more. The new car might not have the 270-mile range of a Model 3, but it will probably be close.
It will use LFP batteries, which last a long time and make it easier to use the full range. With Lithium Nickel batteries, which are found in more expensive cars, you should try to charge the car to 100% only when you really need to. With fast chargers every 50 miles on main highways and the ability to charge at home, the extra range may not matter as much in this class of car.
Throughout the presentation, Tesla kept bringing up their manufacturing philosophy: make it cheaper and better at the same time. They haven’t always kept that promise. For example, when they took out ultrasonic sensors to save money, parking assist went away. However, they say it will be back soon.
Tesla’s goal is to turn the car into a computer. The more of a car is a computer, the more it runs on the economics of electronics, which means it gets better and cheaper at the same time, and not just a little, but by leaps and bounds.
This Silicon Valley way of thinking is also used in how Tesla makes and designs things, and it seems to work.
At the top, you can also see that they think the whole power train of this car will cost around $1,000 to make. At that price, plus the cost of the battery pack, they might be able to make cars for people with special needs for much less than $29,000.
What about the van?
Here, Tesla tells us that they think there will be 700 million cars like the new platform cars, 380 million higher-end sedans, and 40 million luxury sedans in the world’s vehicle fleet, not just Teslas. They also said that 300M “working” vehicles, which include pickup trucks like the CyberTruck and vans like the one they have, would be made. So it looks like a van is in the plans.
Will this be a delivery van or work van, or will it be a minivan for families? Or, as they have hinted, a taxi that looks like a van for their own robotaxi? That’s not what they said. But that’s what’s coming after the basic Tesla.
Pre-orders are not yet available. But we know how much it will cost, a general idea of how it will look, and what features it will have. The y also said that it will be made in a new factory in Mexico, but that won’t change much about the car if you buy it.
There will be a new Tesla Hatchback
Since the first Tesla Roadster came out in 2008, the company has made two sedans, a seven-seater, and a small SUV. There’s also a Cybertruck pickup truck and a Roadster hypercar that will make your eyes water.
The new hatchback will be the least expensive car that Tesla has ever made.
Elon Musk, who calls himself the “Technoking,” talked about a new way to make cars at Tesla’s Investor Day on March 1. This new way should cut the cost of making the Model 3 and Y by half.
The parts of those cars have to be put together and taken apart as they move up the production line, but the new platform was made so that it would be easy to put together.
Teams of people and robots will work together to put together the different parts of the car. At the end, they will all be put together at once, so the whole car is only built once. Musk says that this new process should make time, space, and efficiency 30% better.
You can almost make out that this small hatchback has a short, wide body, and it looks like it might also come with three doors. These are just rough sketches, but if the Tesla Cybertruck is any indication, this new hatchback might look a lot like this when it comes out.
The new battery and range of the Tesla Hatchback
When this new Tesla hatchback does come out, it will have a new kind of battery that is more powerful, safer, and cheaper. This is because its design is tableless and uses a new kind of connector to connect the individual cells.
These are about 35% smaller than regular batteries, but they can store and use more electricity without getting too hot. Tesla says that these new cells will give its new cars about 16% more range per kilowatt-hour of battery.
Even if the battery pack in this new car is only half as big as the one in the Model 3 Standard Range Plus, its new “Tabless” design means it should still be able to go at least 160 miles on a single charge.
For comparison, the cheapest Fiat 500, which costs just over $24,000, can only go 115 miles. That means that this new Tesla will cost £6,000 less than that Fiat and could have almost 30% more range.
Tesla also wants to use the batteries in its new car as a structural part of the car. This will help make the car lighter and stronger because the batteries will be doing some of the work to support the car’s frame, not the other way around.
How well does the new Tesla Hatchback do?
What does that mean for how well things work? Well, if a car is lighter, its motor can move faster because it has less weight to move around. To keep the price down, this new Tesla will probably only have one electric motor, but that doesn’t mean it will be slow.
Even though the Tesla Model 2 Standard Range Plus only has one electric motor, it can go from 0 to 60 mph in just 5.3 seconds. That’s faster than a Honda Civic Type R by almost half a second. With its lighter frame and new, high-tech batteries, this new hatchback could be even faster than that.
Tesla hasn’t said what its USD 25,000 electric car is called, but the media often call it the Tesla Model 2 or even the Tesla Model Q. But at the company’s 2021 annual shareholder meeting, Elon Musk, who helped start the company and is now its CEO, said that it doesn’t plan to use the first one.
On November 14, 2022, the second day of the B20 Summit in Indonesia, the name of the affordable Tesla model came up again. Musk watched the event online, and the host asked him if Tesla should call its entry-level car “Model I,” with the “I” standing for Indonesia and India, where cheap EVs may become popular in a few years. Musk tried to avoid the rumors, but he did admit that a more fuel-efficient Tesla makes sense and that the company should do something about it.
In 2018, the name “Tesla Model C” was said to be one of the names for the car that would come after the Model 3. Until the real name of the USD 25,000 Tesla model is released, we’ll call it the Model 2 or Model Q so that it’s easier to understand and so that search engines can find our story.
Word on the street is that Tesla has finished the Tesla Model 2 prototype in China. A Twitter user named Ray4Tesla said this in 2021, citing a post by a reliable source who goes by the name. Ray4Tesla said that the Chinese social media handle often gets it right before others, and the Weibo post is as follows:
Model next gen (:) It doesn’t make smoke. Most of the suppliers have been negotiated with, and by the end of the year, they will be small-scale. However, they are not being made public.
Features of Tesla Model 2
Tesla will probably offer the full self-driving pack (Tesla Autopilot) in the cheaper Tesla Model 2. This will make self-driving features available to a large number of people. Musk said at the 2020 Battery Day event that the company was confident it could make a fully autonomous Tesla model for $25,000 in three years. Since then, this has changed.
The best entertainment system in its class
Young people who have always wanted a Tesla but couldn’t afford the line-up will buy the compact car. This group of tech-savvy people deserves Tesla’s best. Because of this, it’s likely that the Model 2 will have an infotainment system with a lot of ways to connect and have fun. Cyberpunk 2027 and thousands of other new games were added to the Model S and X by the company in December 2022. It started putting Apple Music in its EVs that month.
Tesla Model 2 battery & motor
A new engine
Tesla wants to use a lot less rare earth materials in the parts of its cars and make them run more efficiently. On March 1, 2023, Tesla said that its next drive unit would use 75% less Silicon Carbide without losing efficiency or performance. The company said that this drive unit will be used in the model that costs USD 25,000. This car will have a controller that is made in its own country. There will be a 48-volt lithium-ion backup battery with thinner wires and less current.
About the LFP battery
Tesla could put a new iron-based battery in the Model 2, which would make it last for a long time. Also, the switch from Nickel to Iron for Tesla’s future entry-level cars shows that the company wants to bring down the price of the car. Since Iron is more common than Nickel, a base made of Iron would make it easier for Tesla to get what it needs. Musk, on the other hand, said that he had told mining companies to make more of the material.
The LFP (Lithium Iron Phosphate) battery would be an important part of the new entry-level Tesla because it has a long cycle life. For commercial applications, a long cycle life is a must. Since Tesla already put LFP in the Model 3, it could have important information about how this chemistry works to improve the Model 2 for the mass market when it is ready to launch.
Tesla Model 2 Range
We think that Tesla may use an LFP battery pack with about 50 kWh (total/gross) of energy. This would give the car a range of about 250 miles, which is enough to make it a reliable and affordable daily driver for city driving.
The company used to offer a CATL 55 kWh LFP battery pack for the Model 3, which gave it a range of 291 miles (NEDC) or 468 km (China).
When it comes out in early 2024, the Renault 5, which could be a competitor to the Tesla Model 2, will have a range of 400 km, or 249 miles, in Europe’s WLTP test cycle. Other upcoming small EVs in Europe are expected to have the same price and range.
So, it’s clear that the Tesla Model 2 must have a range of at least 250 miles and a base price of less than EUR 25,000 if it wants to stay competitive. In most configurations, the rear wheels could be driven by a single motor, and a high-performance AWD version could be the top of the line.
Tesla Model 2 Release Date
The Tesla Model 2 might be shown off for the first time at a special event in 2023. The product might not hit the market until 2025, though.
It is also said that Tesla has started working on the Model 2 again after taking a short break to focus on its most important models. Musk said that the company had put the Model 2 project on hold for a few months, but on November 3, 2022, The Detroit Bureau reported that the future entry-level EV is back in development.
But the article doesn’t say anything specific about when the project will be finished. Tesla is still keeping quiet about the future car, but on March 1, 2023, we should hear something new.
Investors and analysts talk about the delay of the Tesla Model 2
Musk said that Tesla is not currently working on its USD 25,000 model during the Q4 and full-year earnings conference call for 2021. Analysts and investors are not happy about this. Toni Sacconaghi, an analyst at AB Bernstein, doesn’t think the company will sell more than 3 million cars in 2024 if it doesn’t make the USD 25,000 EV.
According to a report from Yahoo Finance, Guggenheim analyst Ali Faghri said that entering the low-price, high-volume segments “will be critical to support the company’s growth outlook” around the middle of the decade.
Tesla’s rivals are already thinking about how to make an electric car that is competitive and affordable for most people. A report from Business Insider says that Lucid Motors is thinking about making a low-range, low-cost model.