Tesla is preparing to launch its highly anticipated entry-level electric vehicle, the Model 2, in the first half of 2025. Formerly known under the project name “Redwood,” rumors of delays or a canceled launch had circulated. Still, Tesla CEO Elon Musk has firmly denied those claims, confirming that the release is on track.
As sales for the Model 3 and Model Y begin to decline and the overall growth rate of electric vehicles slows down, many have called for Tesla to adapt to the changing market. The Model 2 is seen as the first step in this evolution. Recently, renderings of the Model 2 were revealed, offering a sneak peek at the design of what could be Tesla’s most affordable electric vehicle.
Compact Crossover with Tesla’s Latest Design Language
The detailed launch date and design information of the Model 2 have not been revealed. However, Reuters reported in January that Tesla would develop a compact crossover under the project name Redwood (Model 2). The rendering also applies this to create a crossover shape.
The front of the Model 2 sports sleek, horizontal daytime running lights (DRLs) positioned at the top, with unique split headlamps placed lower on the front fascia. These headlamps connect to a vertical air intake, which flows with the angular front design, giving the vehicle a bold yet aerodynamic appearance.
Sleek, Modern Styling with Hatchback Rear
The rendering of the Model 2 continues with a clean, modern look. The lower part of the bumper features a horizontal air intake, finished in black for a contrasting, sporty feel. Despite its compact size, the high and voluminous bonnet gives the vehicle a substantial presence. Auto flush door handles and a long, horizontal character line extending from the doors add to its sleek profile. Chrome detailing along the window beltline elevates the sense of luxury.
At the rear, the Model 2 adopts a hatchback form, with a near-vertical rear that flows into diagonally falling rear glass. Horizontal tail lamps stretch across the back, sharply curving toward the rear quarter panels, giving it a dynamic, modern look. The bumper, which features a larger surface area, includes a horizontal reflector for added visual impact.
Will the Tesla Model 2 help revive its growth momentum?
The upcoming Tesla Model 2 is expected to be priced between $25,000 and $32,500, making it the most affordable vehicle in Tesla’s lineup. Notably, it is rumored to be equipped with Level 4 autonomous driving technology, providing near-complete self-driving capabilities. With the U.S. government’s $7,500 tax credit for electric vehicles, the price of the Model 2 could drop as low as $17,500, making it an attractive option for budget-conscious consumers.
Currently, the Tesla Model 3 is priced at $38,900 in the U.S. market, so the Model 2 will be positioned as Tesla’s cheapest entry-level model. As the electric vehicle market faces a slowdown, Tesla sees the Model 2 as a crucial step in expanding its lineup to attract a broader customer base. However, with such a low price point, concerns about the Model 2’s profitability have been raised. Tesla may need to find a balance between affordability and maintaining strong profit margins.
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