The world eagerly anticipates Tesla’s next move as rumors about an enigmatic electric vehicle circulates among the public. Referred to as the Tesla Model 2, this affordable electric car has remained a mystery since it was first hinted at in 2020. Although the Model 2 was not officially announced at Tesla’s recent 2023 annual shareholder’s meeting, Elon Musk, and his team strongly hinted at the upcoming arrival of a next-generation platform. The exact date of when Tesla will unveil this cheaper, innovative platform is unknown, intensifying the excitement and anticipation worldwide. The world watches impatiently as the ground-breaking EV brand prepares to make an announcement that might change everything.
Ever since Tesla hinted at the inclusion of a budget-friendly electric vehicle in their lineup during Battery Day in 2020, enthusiasts have eagerly awaited any updates on the rumored Tesla Model 2. Although the official name of the project has not been publicly disclosed by Tesla, many car enthusiasts and media outlets have informally referred to it as the Model 2, playing on Tesla’s playful naming tradition that led to suggestions of two additional “sexy” cars. Tesla’s current range of electric vehicles consists of the Model S, Model 3, Model X, and Model Y, with the Model 3 resembling the letter “E” in certain fonts.
During Tesla’s 2023 annual shareholder’s meeting, Elon Musk, the billionaire executive, made an announcement indicating that Tesla is actively working on a new product. Musk emphasized that they are not sitting idle but are actively involved in the design and development of this new product. He mentioned that there are two new products in the pipeline, and their design and manufacturing techniques surpass anything currently present in the industry.
As Musk spoke, a rendered image of a vehicle silhouette appeared on the screen behind him, providing a glimpse of one of the upcoming vehicles. This vehicle could potentially be the $25,000 hatchback that Musk mentioned during the company’s Battery Day event in 2020. However, Musk clarified that the shareholder’s meeting was not the appropriate platform for making a new product announcement and that a proper product launch would occur in due course.
Musk did not explicitly define what he meant by “building” the vehicle during the meeting. It is likely that they are in the process of building a prototype rather than a vehicle for mass production.
Pricing
Earlier, during Tesla’s Investor Day in March, the company teased two new models by showcasing a photo of their entire lineup with two concealed car outlines. One of the vehicles appeared to be the size of a van, while the other resembled a sedan or hatchback. Both models are expected to be more affordable and aimed at higher sales volumes.
While Tesla is renowned for producing sporty cars, the Model 2 may not possess the same level of performance as its counterparts. With an estimated 0 to 60 acceleration time of 5 to 7 seconds, the Model 2 will still showcase the trademark Tesla torque. However, due to a lower-quality suspension, the driving experience may be less exhilarating, resulting in some additional jostling.
Tesla is likely to approach the creation of the Model 2 with a moderate perspective, ensuring affordability. As for the cost of the Tesla Model 2, it is commonly referred to as the $25,000 car, providing a starting point for discussions about its price. Nevertheless, several factors could influence the final cost of the Model 2.
Since the project was initially announced in early 2020, the auto industry has been affected by global shortages and rising inflation, which have disrupted prices for consumers. Consequently, Tesla’s original target price of $25,000 may have been too low. It is expected that the price of the Model 2 will likely be around $30,000 to $35,000, or potentially higher, by the time it goes into production.
Even at this price range, the Model 2 would still be well below the current price threshold to qualify for the federal EV tax credit, resulting in an effective cost to the consumer closer to $25,000. The final pricing of the Model 2 could also depend on Tesla’s ability to implement full-body casting for the new platform, which would reduce the number of parts required for the car’s body and expedite production. Although rumors suggest that Tesla has already ordered the necessary equipment for this process at the Shanghai Gigafactory, this remains unconfirmed.
The Model 2 is anticipated to be a scaled-down version of either the Model 3 or Model Y, offering a more affordable price point and a body style that competes with other lower-priced electric vehicles. It could resemble the exterior dimensions of a small hatchback sedan or compact car but may have fewer amenities and features compared to the Model 3 or Model Y. The Model 2 is expected to directly compete with upcoming electric hatchbacks like the Renault 4 and the Volkswagen ID.2.
Interior
In terms of the interior, the Model 2 may adopt an even more minimalist approach compared to its predecessor, potentially omitting luxuries such as heated rear seats. There is speculation that the interior may not even include a steering wheel or pedals. If the Model 2 is indeed connected to the Tesla Robotaxi project, as some have theorized, it is likely to feature the latest hardware for full self-driving, with the option to access Full Self-Driving via a subscription. Since Tesla’s FSD software is a significant selling point across their vehicle lineup, including the luxury Model S and the more affordable Model 3, it is unlikely that the Model 2 will be released without this feature.
Power
Prepare yourself to hit the road with style and eco-friendliness as Tesla prepares to launch its highly anticipated Model 2. The upcoming Model 2 is expected to have a range of 250 to 300 miles, and it is likely to be equipped with advanced battery technology. While the current Model 3 uses either a nickel-cobalt-aluminum (NCA) or lithium iron phosphate (LFP) battery, there are exciting rumors suggesting that the Model 2 might feature BYD’s innovative blade batteries.
These cutting-edge batteries not only address concerns about battery fires and charging, but they also have the potential to unlock even greater range capabilities for the Model 2. Whether it is the leap or blade battery technology that powers the Model 2, we can expect a base range of at least 250 miles, with additional variants such as long-range and performance models potentially pushing those limits even further.
Production
At Tesla’s Investor Day, it was confirmed that the company has plans to construct a Gigafactory in Mexico. This has led to speculation that the production of the hatchback, often referred to as the “Model 2” by Tesla enthusiasts, will take place at this facility.
There has also been conjecture regarding the second vehicle hinted at by Elon Musk. Some believe it could be the robotaxi, a concept that Musk has mentioned before. During the event, an audience member inquired about updates on Tesla vehicles being used for rideshare purposes. Musk responded by stating that ridesharing would not hold much relevance in a world where self-driving technology is prevalent.
Furthermore, Musk expressed confidence that Tesla is nearing the achievement of full self-driving capabilities, a claim he has made on multiple occasions in recent years.
As always, Tesla’s choice of battery chemistry and installation method will be crucial in making the Model 2 affordable and efficient. While we eagerly await the release of Tesla’s highly anticipated Cybertruck and Tesla Semi, it is expected that most of Tesla’s production capacity will be dedicated to these models throughout 2023.
Unless there is concrete evidence indicating that the Model 2 is already under development in Shanghai or Mexico, it is unlikely that we will see this new vehicle hit the market before the end of 2023. However, if the Model 2 does enter the production queue for 2024, preorders may open up in early 2024 or possibly in the fourth quarter of 2023.
Although we must exercise patience in this waiting game, the prospect of a brand-new Tesla model is certainly exciting. Elon Musk has set an ambitious goal for Tesla: to have over 100 million Tesla cars on the roads by the end of the decade. To achieve this, Musk envisions building around a dozen new factories, with the potential to produce up to 2 million cars per year for most of them. But the two new products alone, as Elon mentioned, will achieve sales figures exceeding five million units annually.