Tesla Model 2: New electric car planned for around 25,000 euros?

There has been constant speculation about whether Tesla could offer a more affordable electric car for around 25,000 euros. Although Elon Musk supposedly dismissed this in the past, according to the latest insider information, such a vehicle—often referred to as the Tesla Model 2—is still firmly in the planning. This could soon allow Tesla to bring a more compact and affordable addition to its current models to the market.

Why an entry-level model is so important for Tesla

So far, Tesla has been focusing heavily on models like the Model Y, which is extremely successful in North America and many other markets. However, this leaves numerous potential customers out who prefer a smaller and more affordable car.

Size and Price:
- In many markets, SUVs like the Model Y are too large and too expensive.
- A more compact vehicle would open up new buyer segments.
Competitiveness:
- Other manufacturers are already offering affordable electric cars for around 25,000 euros—sometimes even with a profit margin.
- Tesla could enter direct competition with these brands with the Model 2.

Possible Ideas for a "Regular" vs. "Non-Regular" Car

Elon Musk never fundamentally discarded the plan for a 25,000 US dollar car, but merely dismissed a "regular" model. What Musk exactly means by "regular" is unclear. It is conceivable that

Innovations or Compromises might play a role, such as in hardware, range, or features;
the pricing could only be realized through novel production methods and high volumes.

Threats to Tesla's Future

Without entering a more affordable market segment, Tesla could fall behind in the race for market share. Other manufacturers are planning or already selling cheaper electric cars, often supported by government subsidies.

Risk of a Too Small Portfolio:
- An offering too focused on expensive and larger models can quickly collapse once competitor products conquer the mass market.
Need for Smaller Models:
- To be able to grow sustainably, Tesla must also serve those markets where large SUVs or high-priced limousines are not an option.

Conclusion and Outlook

Currently, the signs are positive that Tesla is working on a Model 2 or a similar, more affordable entry-level model. This would be a crucial step to remain competitive in the long term and to appeal to a broader customer base. When and under what name the vehicle will actually appear remains to be seen. However, one thing is certain: An affordable Tesla model could once again revolutionize the electric car market—and offer many the opportunity to enter the Tesla world.