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Tesla’s $25,000 Model 2 Revealed—Is This the Budget EV We’ve Been Waiting For?

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Tesla unveils buzz around the budget-friendly Model 2
Virtual rendering attracts attention
Focus shifts to the coupe line

Rendering of Tesla Model 2 / YouTube Channel PoloTo

Tesla’s entry-level models, the Model 3 and Model Y, have long been considered among the most cost-effective electric vehicles (EVs). Few competitors can match Tesla’s performance and value across the board, so the brand is now turning heads with its next big move: the development of the Model 2, a truly budget-friendly EV aimed at expanding Tesla’s reach even further.

Currently under development with the code name Redwood, the Model 2 is expected to be Tesla’s most affordable model yet, with a starting price of $25,000. Notably, the model will forgo the Full Self-Driving (FSD) feature to keep costs down, making it a more accessible option for the mass market. While the design of the Model 2 remains a mystery, recent virtual renderings have piqued interest and provided a glimpse into what the vehicle could look like.

Clean Technica
Rendering of Tesla Model 2 / YouTube Channel PoloTo

A Glimpse Into the Future: Virtual Renderings of the Model 2

On Wednesday, CGI rendering specialist PoloTo released a series of virtual designs for the Tesla Model 2 on YouTube, capturing the imagination of Tesla enthusiasts. Since no prototype of the Model 2 has been spotted yet, the rendering is based purely on speculation, offering two potential designs: a 2-door coupe and a 4-door sedan.

In the case of the 2-door coupe, the silhouette that seems to have been inspired by the design of the Cybertruck stands out with its straight lines. The glass roof that appears to be integrated with the windshield transitions into a graceful curve, and the side mirrors are painted black to add a sense of unity with the DLO line. In the case of the headlamps, they form an ㄱ shape together with the vertical lamps on the side, and the side part that omits the physical door handle emphasizes the futuristic feel.

YouTube Channel PoloTo
CNET

Challenges for the 4680 Battery: Will Tesla Abandon It?

Meanwhile, the 4-door sedan rendering features a sporty coupe-like roofline, blurring the distinction between a traditional sedan and a coupe. A black garnish sits between the rear quarter panel and bumper, and the raised lower bumper enhances the vehicle’s dynamic appearance. Glossy black cladding on the wheel arches further emphasizes the bold, sporty aesthetic.

The Model 2 is expected to be equipped with Tesla’s highly anticipated 4680 cylindrical battery pack, a critical factor in making the car affordable. However, reports suggest that Tesla is facing difficulties in achieving mass production of the 4680 battery. According to foreign media sources, Tesla CEO Elon Musk has stated that if production costs cannot be brought down to target levels by the end of 2024, Tesla may abandon its in-house production of the 4680 battery.

Elon Musk Tesla CEO / WROC
Tesla

Striking target price

Industry insiders predict that the Model 2 will be priced at $32,000. However, thanks to a $7,500 federal tax credit for qualifying EVs in the U.S., buyers may be able to secure the Model 2 for $25,000, aligning with Elon Musk’s 2020 statement that Tesla was preparing a new EV priced at $25,000.

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