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2. Autocar reports the Tesla “Model 2” will enter production next year in Germany.
3. The Model 2 is anticipated to start at $25,000 or less, utilize a radical new production process, and potentially include high-pressure castings for chassis components.
Autocar recently reported that the Tesla “Model 2” will enter production next year, despite it not actually being called the Model 2. The car is expected to be affordable, with a starting price of $25,000 or less. Tesla’s factory in Germany is rumored to be the first to produce the Model 2, as small, inexpensive cars are popular in Europe. The new model, codenamed Project Redwood, will play a crucial role in helping Tesla maintain its position as a top electric car manufacturer.
The Model 2 is believed to feature a radical new production process that could save up to 50% in build costs. It may incorporate high-pressure castings for chassis components, reducing production costs and saving space. Powertrain details have not been revealed yet, but the Model 2 is expected to be offered in both single- and dual-motor versions.
Although past predictions about the Model 2 have not materialized, Tesla is reportedly in talks with suppliers for the new car. Elon Musk has hinted at a late 2025 launch for the Model 2, but skepticism remains due to his tendency to over-promise. Competition from Chinese automakers, who have reduced production costs significantly, poses a threat to Tesla’s future in the electric car market. Overall, the Model 2’s success will be critical for Tesla’s commercial viability moving forward.