Tesla Model 2 to Launch by Late 2025, What’s New?
Tesla has officially confirmed plans to begin production of its long-awaited compact electric car, the Tesla Model 2, in the second half of 2025. With an expected price of around $25,000, Model 2 is poised to become the most affordable Tesla ever built and could significantly disrupt the global EV market.
The vehicle will be manufactured at Tesla’s Giga Texas facility, with potential expansions to Berlin and Mexico in the future. CEO Elon Musk revealed the timeline during a shareholder meeting earlier this year, emphasizing the importance of the next-generation platform and its role in scaling electric mobility for the masses.
Model 2—referred to internally as “Redwood” or “Model Q”—will introduce Tesla’s new unboxed manufacturing process and is expected to utilize 4680 structural battery cells. These innovations are designed to reduce production complexity and cost while improving vehicle range and performance.
Early industry reports suggest the Model 2 may offer a range of up to 500 kilometers (WLTP) and feature both front-wheel and all-wheel drive configurations. The car is likely to compete directly with upcoming entry-level EVs such as the Volkswagen ID.2all, BYD Dolphin, and Volvo EX30, aiming to deliver high efficiency at a low price.
Although the official name and final design have yet to be unveiled, analysts predict customer deliveries in the United States could begin by the end of 2025. International rollouts may follow in 2026 as Tesla ramps up global production.
Tesla’s move into the low-cost EV segment marks a significant shift in strategy, targeting high-volume sales in both developed and emerging markets. With the rising demand for cleaner transportation and increasing regulatory pressure, the Model 2 could become a key driver of Tesla’s next phase of growth.
