Tesla Begins Manufacturing of Economical Model Vehicles
Tesla, the leading electric vehicle (EV) manufacturer, has announced the development of a new, more affordable model, set to be named the Tesla Model 2. The Model 2, designed to cater to a wider audience, is expected to be a stripped-down version of the popular Model 3 and Model Y.
The initial builds of the new model were completed in June 2025, with volume production planned for the second half of the year. Despite an initial launch date of June, the release was delayed into Q3, with the reveal expected at Tesla’s Shareholder Event in November 2025. Orders for the Model 2 are likely to open around or after this launch event.
While the starting price for the Model 2 has not been officially confirmed, it is expected to be around $35,000, making it Tesla's most affordable model since the launch of the original Model 3. It is important to note that the Model 2 will not cost under $25,000.
The Model 2 is not a dedicated robotaxi platform like the Cybercab, nor is it expected to be named or have its pricing and specifications announced yet. The company has not shared any further details about the vehicle's name, pricing, or specifications as of the Q2 2025 update.
In addition to the Model 2, there have been discussions suggesting a cheaper version of the Model Y, which is already in production and slated for sale in Q4 2025. However, the Model 2 is the more distinct and specifically designed affordable model for the mass market with a much lower price point.
The Model 2 will share much of its design with the existing models but will feature fewer features and materials to reduce costs, making it a more affordable option for consumers. Demand for the Model 2 is expected to be high due to the success of Tesla’s entry-level vehicles in the past.
Tesla plans to utilize the existing Model 3 and Model Y production lines for the new models, streamlining manufacturing costs. The company has not announced when orders for the new model will open, but it is expected to be around or after the launch event in November 2025.
[1] Tesla Model 2 expected to be revealed at November 2025 Shareholder Event, with orders likely to open around the same time. [4] Discussions suggest a cheaper version of the Model Y might also be in production. [5] However, the Model 2 is the more distinct and specifically designed affordable model for the mass market with a much lower price point.
- The Model 2, planned for a Q3 2025 release, will share much of its design with existing Tesla models but will feature fewer components to reduce costs, making it an affordable option for consumers.
- While the Model 2 isn't a dedicated robotaxi platform like the Cybercab, it is Tesla's most affordable model since the launch of the original Model 3, with an expected starting price of around $35,000.
- The new Model 2, intended to cater to a wider audience, is expected to be a stripped-down version of the popular Model 3 and Model Y, aimed at the mass market with a lower price point.
- Tesla's plans for the Model 3 and Model Y production lines include producing the new Model 2, which is expected to streamline manufacturing costs for the electric vehicle giant.
