For a long time, Tesla fans have been hearing rumors about a “cheap” electric car that would finally make EVs affordable for most folks. The $25,000 ride—sometimes called Tesla Model 2, other times Tesla Model Q—has been talked about, dropped, picked back up, and treated like some kind of Silicon Valley fairy tale. Now that we’re getting closer to late 2025, though, a simple question refuses to go away: Where is the thing?
The Affordable EV That Could Change Tesla’s Game
The idea behind Tesla Model 2, a low-cost car is simple but huge—picture a small electric SUV priced around $25,000, packed with all the cool tech that Tesla fans love, and maybe even the Full Self-Driving option. Think of it as a sleeker, smarter version of the Model Y with a dash of style borrowed from the high-tech Cybercab.
Rumors say this new Tesla Model 2 will stretch about 4.1 to 4.2 meters long, which makes it perfect for tight city streets, especially in Europe and Asia, where parking spots can be smaller than your average bedroom. Under the hood, a battery in the 53 to 55-kilowatt-hour range is expected to give it a driving range of almost 500 kilometers. The performance won’t win any drag races—figures are hovering under 200 horsepower—but at that price tag, it should do just fine.

So what’s it going to cost you? Tesla is shooting to slice its production costs in half, which should let them sell this model 2 for around $23,000 to $25,000. That price is low enough to beat almost every other electric car on the market that’s comparable in size.
As far as building these things goes, Tesla is going big. The goal is to pump out 4 million of these cars every year from factories spread around the world: 2 million will roll off the lines at Giga Texas and the new plant in Monterrey, Mexico; the other 2 million will come from Giga Berlin, and Giga Shanghai. The new Mexican factory, in particular, is supposed to be the backbone of this plan. It covers more than 4,000 acres and will use modular, Lego-style production that should speed things up and cut costs at the same time.
Price and scale matter, but the car itself is where Tesla wants to really wow you. The new Tesla Model 2 will pack tech like Full Self-Driving, solar roof options, and Powerwall compatibility, making it feel like a moving piece of your smart home. It could link up with your energy system, learn your daily commute, and even help plan your weekend trip. Picture it less as a car and more like a personal robot assistant you sit inside.
But Where’s the Tesla Model 2?
When Tesla made a splash last year by promising to kick off production of the long-awaited Tesla Model 2 by mid-2025, a lot of us pictured cameras snapping prototype cars on secret test tracks by now. Instead, we’ve heard almost nothing. No blurry spy shots, no loose-lipped factory workers spilling secrets, not even a teaser photo on social media. For a company that normally loves to hype every little milestone, the silence borders on strange.
Tesla’s latest quarterly report did say everything is still “on track,” and Lars Moravy, the VP who knows his way around production lines, mentioned they are just tackling “last-minute issues.” That sounds reassuring, except every carmaker is throwing new EVs at the market. Tiny Xiaomi just pulled in 200,000 orders for its shiny YU7 in three minutes. With that kind of noise from rivals, Tesla really can’t stay in the garage much longer.
Is Tesla Model 2 Just a Stripped-Down Model Y?
Here’s where the gossip gets juicy. People who talk to people in the factory say the Tesla Model 2 may end up being a shrunken version of the Model Y, dressed in cheaper materials and dropping a few bells and whistles to save cash. If true, the big headline won’t be breakthrough design; it’ll be thin profit margins squeezed into a smaller assembly line.

Will buyers actually care if the car feels more like a half-baked remix than a brand-new hit?
The Pressure Is Real
Tesla really needs this upcoming car to impress buyers. They don’t just want a fat paycheck; they want people to keep thinking they are the coolest name in EVs. After the Cybertruck—which took forever and got a so-so crowd response—they have only launched one real new model in six years. That kind of gap is starting to look shaky.
On top of that, Elon Musk has stirred up plenty of noise lately, and not all of it’s good. His political posts and headline-grabbing spats are rubbing some long-time fans the wrong way. If Tesla wants to get back its superhero status in the EV world, it will take more than flashy robots and new buzzwords. It has to deliver cars people actually rave about.
More Than a Car, More Like a Branding Test
Tesla Model 2 is about way more than putting an affordable EV on the street—it’s really a test of Tesla’s whole reputation. If the $25,000 model arrives on time, works well, and doesn’t fall apart, it can steal lots of customers from Toyota and VW. But if it’s late, buggy, or just plain boring, it will join the other “coming-soon” jokes that have popped up over the years.

So, we sit tight and keep scrolling for Tesla Model 2 news. True to Tesla style, anything could happen—from a wild stadium launch to a simple update slipped into Model Y software. Either way, eyes are glued to their next move.
And this time, it’s not only the hardcore investors or the die-hard fans who are paying attention; pretty much everybody is watching what happens next.
For more information, visit Tesla.com.
👉 Please 📩SUBSCRIBE to us for more real-world EV analysis, news, and deep dives — written for EV fans by EV fans.

Hey, I’m Badal! I’m super passionate about cars—especially electric ones. Whether it’s EVs, electric trucks, bikes, or anything with a battery and wheels, I’m all in. I love writing blogs and articles that break things down for fellow enthusiasts and curious readers alike. Hope you enjoy the ride as much as I do!