Summary
- Elon Musk expressed keen interest in creating an economical Tesla at the B20 Summit in Indonesia on November 14, 2022, which could result in a $25,000 electric car that redefines the entry-level market.
- The potential of the Model 2 extends beyond its design, as Tesla's gigafactories in various regions could make this compact EV accessible to the masses with the use of innovative battery technology like LFP chemistry.
- A $25,000 Model 2 would not only be the lowest cost for a Tesla customer but would also beat out even the cheapest EVs currently on the market, potentially dominating the cost-effective electric car market and surpassing the sales of the Model 3.
Are you wanting to buy a Tesla but hesitant to break the bank at a $35,000+ price tag? Unfortunately, that has been the case for many EV shoppers: Until now. The buzz about a budget-friendly Tesla has been circulating since 2018, affectionately dubbed the Model 2 by eager enthusiasts. Although Elon Musk brushed off the name in 2021, the anticipation grew stronger. And now, it's becoming more tangible than ever. During the B20 Summit in Indonesia on November 14, 2022, Elon Musk expressed keen interest in creating an economical Tesla.
Picture this: a $25,000 electric car that could redefine the entry-level market. The 2020 Annual Shareholder Meeting and Battery Day unveiled Tesla's strategic plan to tap into the $25,000-$30,000 price bracket, an area largely untouched by electric vehicles. With advancements in manufacturing and battery tech, Tesla is poised to make this a reality. By doing this, the brand could capture a new genre of customers, from first-car owners to seasoned Tesla buyers.
The Model 2's potential isn't confined to its design alone. Gigafactories in various regions, from North America to Europe and Asia, could make this compact EV accessible to the masses. Powering the Model 2 raises exciting possibilities. While the acclaimed 4680 batteries might not be on the table, innovative solutions like LFP chemistry could offer efficiency and affordability without compromising performance. We'll have to wait and see.
Tesla Making An Affordable EV Will Change The Industry
With plans for an affordable Model 2 already in motion, it becomes more exciting for those who want a Tesla but do not want to pay Tesla prices. After all, this EV company has always been seen as one for those who can throw down $35,000 or even $40,000 on a base entry model, which is impossible for many. Model 2 comes at a time when we need an affordable and reliable electric car on the market, as well as cutting-edge design and high-tech features.
Introducing an affordable Tesla would rattle the competition significantly. Considering many base-level EVs retail for close to $30,000 in the 'affordable' sector, Tesla could have a gold mine on its hands at $25,000.
When you shop for affordable electric cars now, most options will be plain and not have any exciting features or outer design elements. Even with Tesla watering down its design for the Model 2, we'd expect the release to still have a sexy outer and inner aesthetic like we've come to know and love from the brand. On top of that, Tesla is investing in better battery technology (solid-state, hydrogen, etc.) that could implement better range into one of these "cheaper" versions.
As of current reports, we expect around 250 miles of range for the Model 2, but that's not to say this can't or won't change. Ideally, the company can find a way to produce long-range batteries at an affordable rate, including them in even base models. However, Tesla can still dominate the industry at 250 miles and a $25,000 price tag. The company is rumored to have 2024/2025 set for the debut of Model 2, but we'll hang tight until a press release *officially* drops.
At $25,000, The Tesla Model 2 Would Be One Of The Cheapest EVs On The Market
Besides being the lowest cost for a Tesla customer, a $25,000 Model 2 would beat out even the cheapest EVs currently being sold. For instance, the Chevy Bolt retails for a base MSRP of $27,495, which would set the all-new Model 2 a couple of thousand less if Tesla holds true to its promise. We haven't seen a traditionally 'luxury' brand do something like this (ever), so Tesla would be taking a massive bite out of the cost-effective electric market.
After all, Elon Musk wants domination in the vehicle realm. If he and his team can create a Tesla for that of a Chevy, Nissan, or other base-level model from a competitor, that puts Tesla in a much stronger position heading out of the 2020s. EVs will soon take up a large chunk of the auto market, especially as further restrictions on carbon go into effect globally. The Model 2 could be a global dominating force, much like Tesla's original base-level car, the Model 3.
Even at a higher price tag, Model 3 brought attainable luxury and eco-friendly driving to the masses, selling nearly a million units in the U.S. alone, which is incredible for any car company. In most major cities and suburbs, we're starting to witness the 'Tesla effect' with nearly every other car being a Tesla on the road. The Model 2's affordable rumored price will only add to these figures.
The Tesla Model 2 Could Sell Better Than The Model 3
- Tesla Model 2 will likely overpower Model 3 in sales.
- The Model 3 has proven to be Tesla's most successful release yet.
Since its debut in 2017, the Model 3 has pioneered Tesla through global markets and won the hearts of millions of drivers. This had originally been the "affordable" model from Tesla, with many people being thrilled they could purchase an electric car that wasn't clunky for under $40,000. However, as times have changed and other manufacturers have brought cheaper, more competitive designs to market, Tesla has felt the heat in the lower-tier sector.
As of 2023, Tesla has sold a total of 3,909,038 Model 3 and Model Y vehicles in the world, making these two of the companies' biggest ticket items. With the Model 2 quickly approaching the production line, we'd assume it could make for a successful 2025 and beyond for the brand. After all, we're seeing many car companies go after the luxury EV sector in greater strides than the affordable one, which Tesla could use to its advantage.
Tesla already has the name, branding, and power within this space, so if it can produce a high-quality lineup for under $30,000, the world becomes its oyster.
Expect The Tesla Model 2 To Hit The Roads In 2025
With countless reports circulating claiming the Model 2 could be released as soon as 2025, we're certainly excited to see first glances and test shots of this vehicle. After all, Tesla has many projects in the works for the next couple of years, including the infamous Cybertruck and redesigned Model 3, among other luxury models like the Roadster.
What we've noticed from the brand is that Tesla is no longer a one-trick pony. This is a company after total world domination in relation to vehicle production and sales, which can only mean more surprises are on the way for us. We've even seen some creators and enthusiasts speculate the Model 2 could go for $20,000 base pricing, although we'd be skeptical of the brand pulling that off.
Here's an interesting video showcasing what could be for the Model 2:
Again, we're at the beginning phase of the Model 2 coming to light, and we likely won't get much information from the brand until they are 100 percent sure this is a possible endeavor. After all, creating a cheap EV sounds nice to the everyday driver but can mean significant budget cuts for the company manufacturing it. However, if someone were to crack the code and blend high-tech driving with affordability, it would likely be Elon Musk.