So far, tons of people still don’t buy that Tesla is actually dropping an affordable Model 2 anytime soon. Most folks are like, “Yeah, I’ll believe it when I see it.” But if you’re thinking about snagging a Tesla Model 3 or Model Y right now, we’d bet you’ll kick yourself later. This time, we’re closer than ever to seeing this car for real, with reports saying it’s launching in just 15 days at a huge June event. It’s dropping alongside the CyberCab RoboTaxi priced at only $24,990.

Tesla Model 2: The Affordable Game-Changer

The Model 2 is basically a stripped-down Model Y, and it’s going to be the best bang for your buck — ready to take on BYD and other budget cars. It’s not a hatchback; it’s a crossover with specs punching way above its price.

If you’re driving mostly around the city and under 300 miles a day, hold off for the Model 2 — it won’t let you down. Here’s what’s coming with this car, so let’s check it out now.

Why Has the Model 2 Taken So Long?

Ever since Elon Musk teased an affordable Tesla 2 years ago, everyone has been buzzing about its specs and design. People are stoked for a compact city-friendly Tesla at a killer price.

But it’s kind of wild that the Model 2 still isn’t out in the real world.

There are a bunch of reasons floating around for the delay:

Some say the Model 2 won’t rake in big profits, so it’s not Tesla’s top priority.
The more convincing reason is that Tesla just can’t make a car under $30,000 — they’re only good at building wallet-busters.
Some folks think the Model 2 is just a stock-pumping gimmick and Elon’s biggest hype job yet.

We used to think the same way, but all those reasons for the Model 2’s delay might just be temporary roadblocks. With production plans shifting and supply chain issues pretty much sorted out, the Model 2 is coming sooner than anyone expected. It’s confirmed to drop mid-next month, right in line with Elon Musk’s early year report that a budget-friendly car would hit the market in the first half of this year.

What’s The Deal With The Tesla Model 2?

Like we mentioned earlier, the Model 2 isn’t some brand new car from scratch — it’s basically a scaled-down Model Y. Elon Musk and Lars Moravey have confirmed it’ll roll off the same production line. It’s part of Tesla’s push to get a car under $30,000.

Elon’s even said this will be Tesla’s most mass-produced car ever with production speed that’ll outpace the Model Y.

Minimalist Design To Hit The $25,000 Price Tag

Tesla has gone super minimalist with the Model 2’s design. Truth is, some customers used to the Model 3 or Model Y’s vibes might not love it — but these are the trade-offs we got to deal with.

Battery: The Key To The Model 2

Can you believe they’ve made a battery pack for just $2,500? Yeah, it’s real.

The Model 2’s battery isn’t some massive 65 or 75 kWh unit like people guessed.
Recent reports backed by Tesla Newswire say it’s rocking a smaller pack somewhere between 50 and 55 kWh.
Tesla’s going with one of the cheapest batteries out there: the LFP battery.

LFP batteries aren’t the highest-performing or most energy-dense tech, but their big wins are low cost and safety.

Let’s be real — the Model 2 isn’t about crazy performance. If you’re chasing that, you wouldn’t be eyeing this car anyway. LFP batteries were made for the Model 2: they slash production costs while still delivering solid performance.

In fact, the whole battery pack for the Model 2 is expected to cost around $2,500, making up about 10% of the car’s total price.

How Is This Possible? Battery Cost Trends

Battery costs have fallen sharply in recent years thanks to the fall in raw material prices like lithium carbonate, which dropped from around $70,000 to less than $15,000 per ton between 2022 and 2024.

LFP batteries cost between $110 and $124 per kWh in early 2023.
By 2024, the price dropped to around $60 per kWh.
Early 2025 estimates place it at $50 per kWh.

At this price, a 50 kWh LFP battery pack costs Tesla only about $2,500 to produce, with CL as the main supplier.

Range: More Than You Expect

It may sound unbelievable, but the Model 2 can completely achieve a range of 300 miles, not inferior to the Model 3 or Model Y, even with a relatively small battery pack.

A typical 50 kWh battery pack can provide around 250 miles.
The Model 2 benefits from lighter weight and a more minimalist design with better aerodynamics, which could add at least 40 miles of range.

Elon Musk has stressed that 300 miles or more is enough for most people’s daily activities. It’s rare for a driver to travel 300 miles without stopping for a break or refueling, so this range is perfectly reasonable — even superior — for normal use.

Design And Features Of The Tesla Model 2

As a cut-down version of the Model Y, the Model 2’s exterior won’t be too different from its sibling, sharing a similar overall design.

What’s interesting is whether Tesla will adopt the design of the old Model Y or the new version for the Model 2.

We personally like the new version, especially the signature LED light bar.
If the Model 2 gets this feature, it will be an interesting highlight.

Light bars are becoming a popular design trend that Tesla has applied to its new product lines — from the Model S and Model 3 to the Model X and Model Y.

Tesla models generally embrace a minimalist modern design, and the Model 2 is no different.

Exterior and Interior Simplifications

The Model 2 is about 20% smaller than the Model Y, giving it a compact, agile look.
It will feature smaller wheels, expected to save around $500 per vehicle.
The Model 2 will use single pane windows and a single-color ambient lighting strip around the dashboard, unlike the 256 color options in the Model 3 and Model Y.

Inside:

It will seat five but with less comfort than the Model 3.
Uses cloth seats instead of premium materials.
No heating or ventilation in seats — a tactic Tesla used in the base Model 3 to cut $500.
Center screen will be 10 to 12 inches, down from Model 3’s 15 inches.
No rear passenger screen, saving an additional $200 to $500 while retaining an intuitive interface.
Audio system simplified with fewer speakers — likely 7 to 9 speakers compared to the 15 plus subwoofer in the Model Y AWD.

Other Cost-Cutting Features

Rear trunk will be streamlined, lacking a powered liftgate, requiring manual operation.
Hood will use standard metal instead of premium materials, further keeping costs low.

Powertrain And Performance

A key highlight is the Model 2’s single motor setup.

Two years ago, Tesla announced development of a $1,000 motor for affordable models.
The Model 2 would be ideal for this technology.
Tesla is exploring ferrite magnets instead of costly rare earth magnets.
Expected power output: 200 to 250 horsepower, achieving 0 to 60 mph in 6 to 7 seconds — comparable to budget compact cars.
The Model Y’s motor costs around $2,000, so the Model 2’s motor could save Tesla $1,000, helping keep a competitive price.

Full Self-Driving (FSD) Support?

We believe the Model 2 will either lack full self-driving support or have minimized FSD hardware.

Tesla will likely retain only basic safety features like automatic emergency braking and collision warnings, rather than the full suite of cameras and sensors for FSD.

This makes sense for a budget vehicle, as removing FSD could save several thousand dollars.

Where Will The Model 2 Launch?

Contrary to initial expectations that the Model 2 would be produced at Giga Texas, it will actually debut in China and Europe first.

Manufactured at Giga Shanghai.
The Model Y production line in Shanghai is extremely fast, able to produce a Model Y in just 33 seconds.
With fewer components, the Model 2 could be built in about 20 seconds on a similar line.
Producing the Model 2 at Giga Shanghai lowers battery costs, as most of Tesla’s LFP batteries are sourced from China through partner CL.
Avoids high import taxes compared to US production.

Launching in China and Europe is a strategic move to protect and grow market share in regions seeing rapid growth in the affordable EV segment, where Tesla is increasingly losing ground to competitors.

Tesla’s Broader Innovations: Robo Taxis and Beyond

The Model 2 will launch alongside Tesla’s Cyber Cab Robo Taxi, adding a new dimension to Tesla’s urban transportation plans.

Additionally, Elon Musk recently confirmed major progress in Tesla’s self-driving technology.

Tesla’s Self-Driving Milestone

Tesla has successfully tested fully self-driving Model Y vehicles without a human behind the wheel on public roads in Austin, Texas.
Plans to deploy self-driving car deliveries from the factory to customers as early as next month.
This marks a huge milestone in Tesla’s ambition to bring full self-driving technology to users on a large scale.
Austin’s diverse traffic environment is an ideal testing ground.
The lack of incidents during the test demonstrates Tesla’s remarkable progress.

Tesla Semi and Robotics: The Future Unfolds

Tesla is also pushing forward in other areas.

Tesla Semi

Mass production expected by end of 2025.
New frames and components spotted outside Gigafactory Nevada.
Targeting 50,000 semis per year when stable.
Aims to replace diesel trucks, reducing emissions.

Tesla Bot: Optimus

Tesla Bot, or Optimus, is revolutionizing robotics.

Can learn up to 100 new tasks daily by watching videos.
Performs household chores and industrial tasks.
Uses a single neural network to execute commands.
Learns by observing human videos and practicing in simulations.
Has advanced motor control with both hands.
Collaborative learning means when one Optimus learns a task, all robots share that knowledge instantly.
Battery offers 8 hours of operation.
Safety measures needed to prevent misuse.
Expected commercialization with pricing likely between $40,000 to $50,000 in 2026.
Musk predicts a $20,000 price point only when producing 1 million robots annually (~2029–2030).

Final Thoughts

The Tesla Model 2 is finally coming — a budget-friendly, city-ready crossover that promises to shake up the affordable EV market with a competitive price of $24,990 and a range of 300 miles. With a minimalist design, cost-cutting innovations, and smart production strategies, Tesla is poised to broaden its market reach.

Paired with advancements in self-driving tech, the Cyber Cab Robo Taxi, the Tesla Semi, and the ambitious Tesla Bot Optimus, Tesla continues to push the boundaries of electric vehicles and automation.

If you were thinking about buying a Tesla now, it might be worth waiting just a little longer to see what the Model 2 can do — this could be Tesla’s most accessible car yet and a major leap toward affordable, sustainable transportation for everyone.

FAQs

1. What is the Tesla Model 2?
The Tesla Model 2 is an upcoming affordable electric crossover, essentially a scaled-down version of the Model Y, expected to start at around $24,990. It’s designed for city driving with a focus on value and efficiency.

2. When will the Tesla Model 2 be officially launched?
Reports suggest the Model 2 will be unveiled in just 15 days at a major Tesla event in June, alongside the Cyber Cab robo taxi.

3. How does the Model 2 compare to the Model 3 and Model Y?
The Model 2 is more minimalist and budget-friendly, with a smaller battery pack, fewer premium features, and a focus on city use. It sacrifices some luxuries to keep costs low but offers competitive range and performance for its price.

4. What is the expected range of the Tesla Model 2?
The Model 2 is expected to achieve a range of around 300 miles, which is impressive given its smaller battery size of roughly 50-55 kWh.

5. What kind of battery does the Model 2 use?
Tesla is equipping the Model 2 with a Lithium Iron Phosphate (LFP) battery, which is safer, cheaper, and more sustainable but with lower energy density compared to other types.

6. Where will the Model 2 be manufactured?
Unlike previous expectations for Giga Texas, the Model 2 will launch in China and Europe first, being produced at Tesla’s Giga Shanghai factory.

7. Will the Model 2 have Full Self-Driving (FSD) capabilities?
The Model 2 will likely have basic safety features like emergency braking but probably won’t include the full suite of FSD hardware to keep costs low.

8. How much does Tesla aim to sell the Model 2 for?
Tesla targets a price point of around $24,990, making it the most affordable Tesla yet and a strong competitor in the budget EV market.

9. What is the Cyber Cab robo taxi?
The Cyber Cab is Tesla’s upcoming autonomous taxi service vehicle, debuting alongside the Model 2 at the June event, aiming to revolutionize ride-sharing with full self-driving technology.

10. How does Tesla plan to keep costs low on the Model 2?
Cost savings come from a smaller battery pack, single motor setup, minimalist interior, simpler materials, and streamlined manufacturing processes.

11. What impact will the Model 2 have on Tesla’s market share?
The Model 2 is expected to help Tesla expand its market presence, especially in Asia and Europe, by offering an affordable EV option to compete with brands like BYD.

12. What recent advances has Tesla made in self-driving technology?
Tesla recently successfully tested fully self-driving Model Y vehicles without a human driver on public roads in Austin, Texas, marking a major milestone.

13. When will Tesla start mass production of the Tesla Semi?
Tesla aims to begin producing the Tesla Semi by the end of 2025, targeting full-scale production and a capacity of 50,000 units per year by 2026.

14. What is Tesla Optimus and how does it relate to Tesla’s future?
Tesla Optimus is a humanoid robot designed to learn and perform a variety of tasks from household chores to factory work, powered by AI and Tesla’s full self-driving technology, potentially transforming robotics and automation.

Don’t Buy A Tesla Now | New Model 2 $24,990 Coming In 15 Days At Robotaxi Event