While Tesla is currently making great progress with several projects, including the long-awaited Cybertruck and the rocket-powered Roadster, one rumored vehicle has people buzzing with anticipation. With the trial production phase rumored to begin by the end of 2021, many Tesla fans are eagerly awaiting the release of the $25,000 Tesla vehicle model, referred to by many news outlets as the “Model 2”.
One of the first questions the public had was where exactly this vehicle would be designed, and when the facility in question would be complete. In a recent announcement on Wednesday, Tesla officials said that construction was completed on the facility that will be designing this mysterious $25,000 vehicle.
Tesla’s Shanghai Facilities
In the recent Tesla earnings call the EV manufacturer confirmed that its research and development center in China recently finished construction. It is located within Tesla’s Shanghai Gigafactory, and is the first Tesla R&D center to be built outside of the United States. Rumors of the completion were fueled in August, when Tesla posted ads for engineers and designers to staff the center.
Very little other information was shared, but it has been confirmed that the Model 2 will be designed in this Chinese facility; The reasoning being that Tesla believes that is where the primary market for the Model 2 will be.
Recap For Those Who Missed the Model 2 Hype
Though the official name has not been released, the press have used “Model 2” as a shorthand way to reference this mysterious and affordable new model of Tesla.
In a released early design sketch, the Model 2 appears to be a hatchback style electric car, though the production design has not been finalized. One thing is for certain: that 25k price means many more people will have the ability to afford a Tesla model.
The Model 2 Helps Tesla Compete
With a price tag that affordable, Tesla seems to be planning to take on other automakers with lower-cost EV models. For even the most affordable electric vehicles you are looking at a minimum of $30,000 if you purchase your car new from a dealership; The 2021 Mini Cooper SE, for example, is $30,750 brand new. As of now Tesla's current lowest priced car is the Model 3, which starts at $44,690 for the standard range plus model.
The introduction of a $25,000 Tesla model means many who were interested in Tesla, but turned off by the hefty price tag, may now be joining in the EV game. As upcoming legislation involving EV related tax credits approaches, this price tag will seem even more attractive. This affordable model is clearly a strategic move by Tesla to further corner the EV market.
So when is the Model 2 Getting Released?
In a statement to employees in September, CEO Elon Musk said that they should anticipate production of the Model 2 to culminate in a release in 2023. He also said it was a possibility that the car may not even have a steering wheel. “Tesla will complete a $25,000 electric vehicle that is also fully autonomous,” Musk said.
It's important to note that Musk has not referred to the vehicle as the Model 2, only as the “$25,000 electric vehicle.” Musk actually directly addresses the rumored name, never one to be swayed by the public’s opinion. In a statement at the 2021 Tesla shareholders meeting Musk was quoted as saying “Model 2 is not a car. There’s no Model 2.”
Production Ramps Up for 2023
Despite this, the plans for the unnamed $25,000 car are well underway and moving quickly towards a 2023 release date. As of now, current Tesla drivers have a lot of Tesla aftermarket accessoriesavailable to tune up their car.
Regardless of what name Tesla ends up going with, it will be interesting to see how this “Model 2” stacks up against the current lineup in Tesla's impressive stable of vehicles. For now, Tesla fans will have to be satisfied knowing the Shanghai R & D center in which the model will be designed is complete; This means the manufacturer is that much closer to releasing this exciting affordable EV.