Elon Musk’s Big Promise: Tesla Model 2 to Hit the Roads in 2025, Starting at $25,000

Elon Musk mentioned
Affordable new model worth $25,000
Scheduled for release in the second half of 2025

CEO Elon Musk has always said that Tesla will release a new affordable EV, the Model 2, in 2020. If Tesla launches an affordable electric vehicle, as Musk said, it could be a good opportunity for consumers who hesitate to purchase electric vehicles due to high prices.

However, the model name of the cheaper model has not yet been revealed, and very little is known. Accordingly, some rumors have emerged that Musk may have canceled the development of a more affordable model.

When will the affordable new vehicle, the Model 2, be released?

For a long time, Tesla investors and fans believed that a smaller and cheaper electric vehicle than the Model 3 sedan would be released after the Cybertruck and continue Tesla’s path. Further, Musk and Tesla executives mentioned a low-cost, next-generation vehicle during the earnings conference, and Tesla fans are tentatively calling the vehicle Model 2.

In April 2024, famous overseas media claimed that Tesla had scrapped its plans for the so-called Model 2, raising uncertainty about Musk’s mention of developing affordable electric vehicles. However, he refuted the foreign media’s claims and said he would accelerate the launch of new models at the first quarter earnings presentation in April 2024. Considering this, Model 2 is believed to be currently under development.

Expected to be released in the second half of 2025
Production to start late this year or early next year

In January 2024, Musk announced that Tesla’s next-generation vehicle would be launched in the second half of 2025, and in April 2024, he said that production of Model 2 would begin in late 2024 or early 2025. With the electric vehicle trend fading, Elon Musk appears to be waiting for the right time to launch a new electric vehicle.

In 2023, he said that Tesla’s next-generation vehicle will look much more traditional than the Cybertruck. Subsequently, in May 2024, foreign media reported that Model 2 resembled a slimmer Model Y. However, at the earnings presentation in April 2024, he avoided answering whether Model 2 was a modified version of Tesla’s existing vehicle or a vehicle with a completely new design. Therefore, there is only speculation about the design direction of Model 2.

Expected to be priced around $25,000
Could be launched at a maximum of $29,293

In 2020, Musk first mentioned plans for an affordable electric vehicle, predicting that a new car costing about $25,000 would be launched within three years. Since then, Tesla has kept quiet about the price of the Model 2, although the price of the Model 3 could predict the price of Tesla’s new car.

Since the current price of Model 3 is about $40,630, Model 2, a cheaper electric vehicle, is expected to be launched for at least $38,990, although it may not be as cheap as Musk mentioned. Everyone’s attention is focused on whether Tesla will be able to launch the rumored Model 2.