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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.
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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.
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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.
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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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