Elon Musk has sparked new excitement with the announcement of Tesla’s upcoming Model 2, internally referred to as “Redwood.” Set to begin production in mid-2025 at the Giga Texas facility, the Model 2 is designed to be Tesla’s most budget-friendly electric vehicle to date. Musk revealed the project during Tesla’s Q1 2024 earnings call, emphasizing a price target between $25,000 and $30,000. While some social media users have speculated about a much lower price of $11,975, industry experts, including Reuters, predict a more realistic range of $25,000 to $35,000 due to the cost of batteries and international tariffs. The Model 2 is expected to compete with affordable models such as the Honda Civic, priced at $23,950, and budget EVs like the Chevy Bolt, potentially transforming the U.S. electric vehicle market.
Design and Key Features
The Tesla Model 2 is anticipated to adopt a compact crossover style inspired by the Model Y. It is expected to feature sleek LED headlights, a minimalist front grille, and 18-inch wheels. Built on Tesla’s next-generation platform and using LFP batteries, the vehicle is likely to deliver between 150 and 200 brake horsepower (bhp) with an estimated range of 250 to 300 miles. Inside, the Model 2 may include a 15-inch touchscreen with the Tesla user interface, Autopilot as a standard feature, and Full Self-Driving (FSD) available as an option. The vehicle will also likely include vegan leather interiors. Tesla’s unique “unboxed” manufacturing approach could reduce production costs by up to 50%, paving the way for large-scale production. While some social media users speculate it may resemble a Cybercab, it is more likely a simplified version of the Model 3 or Model Y.
Highlighted Features
- Compact crossover design with LED lighting
- 15-inch touchscreen interface
- Autopilot included, Full Self-Driving optional
- 250-300 mile driving range with LFP batteries
- Supercharger compatibility (125-150 kW charging speed)
Specifications
| Feature | Details |
|---|---|
| Battery | Estimated 53-60 kWh LFP |
| Range | Estimated 250-300 miles |
| Power | Estimated 150-200 bhp |
| Price | Estimated $25,000-$35,000 |
| Release Date | Mid-2025 (production starts) |
Why the Model 2 Matters
The Model 2 could mark a major milestone in Tesla’s journey to make electric vehicles more accessible. Elon Musk first hinted at a $25,000 EV in 2020, and now it may become a reality. With a potential $7,500 federal tax credit in the U.S., the effective price could drop to around $20,000 for eligible buyers. However, reports from Reuters suggest that Musk might have shifted focus from a dedicated Model 2 to more affordable versions of the existing Model 3 and Model Y, while also emphasizing the development of the $30,000 Cybercab robotaxi. There may also be delays in production extending into late 2025 or even 2026 due to the complexities of implementing new manufacturing technologies. While some view the Model 2 as a potential “market reset,” others remain cautious, considering Tesla’s past delays in launching new models.
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Production Timeline and Availability
Tesla plans to start production of the Model 2 by June 2025 at its Giga Texas facility, with the first deliveries possibly occurring by the end of the year. However, according to Reuters, delays could push initial availability to 2026. Tesla may unveil the vehicle during its Q2 2025 event. Once launched, customers will likely be able to place orders through the official Tesla website. With a target of producing 10,000 units per week, the Model 2 could play a key role in boosting Tesla’s vehicle delivery numbers, especially following a reported 13% drop in sales in Q1 2025. For updates and booking details, visit tesla.com.
