Tesla Model 2 (USD 25000 Tesla) imagined in 5 different looks

The Tesla Model 2, the name the internet has warmly given the upcoming Tesla compact car, was confirmed by the company at its 2020 Annual Shareholder Meeting and Battery Day held last year. The USD 25,000 affordable Tesla car is expected at the end of 2023. Here are some interesting design inspirations for the model.

The Tesla Model 2 pictured above comes from Instagram user Sugarchow (Instagram handle: sugardesign_1). Like most speculations, it shows the USD 25000 Tesla car as a compact hatchback to challenge the VW ID.3 and Nissan Leaf. European customers could be the main target for Tesla’s VW ID.3 challenger but China shows the biggest potential for a cheaper Tesla in the current scenario.

Crossover Tesla Model 2

Tesla Model 2 render Shanghai
Tesla invited designers in China to submit portfolios on social media in January last year. Image source: Tesla in China

The design sketch above was posted by Tesla on Chinese social media following the Made-in-China Tesla Model 3 launch ceremony in January last year. During the event, Tesla CEO Elon Musk also stated that the company wanted to create a design and engineering center in China to design an original car for worldwide consumption.

Following the message, Tesla invited designers in China to submit portfolios. The company was on a hiring spree in China for the Gigafactory soon after. The first batch of Tesla Model 2 prototypes is expected to start testing this year, a Sina Auto report had suggested at the beginning of the year.

Tesla Model 2 as a supermini

Tesla Model 2 SUV design render
Tesla news sites ask the important question: Will the Model 2 have a crossover-SUV design? Image via Twitter

Autonomous driving

Regardless, we know for sure about the Tesla Model 2 because even at its affordable price point, it will offer the full self-driving pack (Tesla Autopilot), bringing autonomous features to a wide audience. Musk confirmed this last year at the Battery Day event, where he stated the company was confident in making a fully autonomous $25,000 Tesla model in three years.


While the Tesla news sites on the internet speculate the Model 2 as a sedan or crossover-SUV bodystyle, manufacturing could take place at both Tesla Gigafactory Shanghai and Tesla Gigafactory Berlin. Last year, a Chinese Environmental Impact Assessment document talked about expanding production capacity at the Shanghai facility for “the production capacity of Model 3, Model Y, and related derivative models.”

Tesla Model 2 as a city runabout

Tesla Robotaxi render
The Tesla Robotaxi could be based on the Model 2, but luxury/convenience features would be filtered for the commercial application. Image: André Domingues via Coroflot

Tesla Model 2 battery

Coming to its battery, the Tesla Model 2 is expected with the new Iron-based battery, which promises long cycle life. Further, the shift from Nickel to Iron for its entry Tesla future cars indicates the company is keen on lowering the cost of the car. An Iron base (which is more abundant than Nickel) would mean that Tesla would have fewer supply constraints than Nickel. However, Musk indicated he had urged mining companies to produce more of the material.

With its long cycle life, the Tesla LFP battery (Lithium Iron Phosphate) would be an integral part of the Tesla Robotaxi. Long cycle life is paramount for commercial applications. The Robotaxi could be a derivative of the Model 2 with some of the luxury/convenience features deleted. Since Tesla already introduced the Model 3 with an LFP battery, the company could gather essential insights into this chemistry for optimization in the mass-market Model 2 in 2023.

Model 2 as a C-Segment hatch

Tesla 25000 USD car render
A Tesla Model 3 with the LFP battery is now on sale in China. The company would use these learnings for the Model 2’s LFP. Image source: PSArtcar via ArtStation

Tesla Model 2 FAQs

What is the Tesla Model 2 release date?

The Tesla Model 2 (name: TBA) is expected to launch in late 2023.

Which electric cars are considered as Tesla Model 2 rivals?

The Tesla Model 2 will challenge the VW ID.2, Renault 4, and the Nissan Leaf.

What is the estimated Tesla Model 2 price?

The Tesla Model 2 would start at USD 25,000.