Tesla Model 2: what to expect from Tesla’s cheapest electric car

---

Tesla could soon reveal a smaller and cheaper electric car for the masses, with the small passenger vehicle rumoured to be called the Model 2.

Set to be a rival for the likes of the Volkswagen ID3 and Cupra Born electric cars, Tesla’s cheapest electric vehicle could undercut those key competitors, costing as little as USD$25,000, or roughly AUD$38,000. 

Reports from Autocar have said that the Model 2 could ride on Tesla’s next Generation 3 platform that is likely to be discussed in more detail at the Investor’s Day. 

Tesla’s current range consists of four models, though only two are presently sold in Australia: the Model 3 sedan (from $64,300 before on-road costs), and the Model Y midsize SUV (from $69,300).

Tesla’s event is set to kick off on March 1 at the American automaker’s Texas Gigafactory where it is expected Elon Musk will deliver his third ‘Master Plan’. 

Is a $40,000 Tesla model possible in Australia?

Tesla’s present base model, the Model 3 rear-wheel drive, costs about $67,000 driveaway in Australia, so achieving a far cheaper price for a hypothetical Model 2 is a tall order.

Rumours of a starting price of USD$25,000 (AUD$38,000) have raised doubt among analysts over whether this pricing is achievable. 

US analysts have predicted that it is more likely the future Model 2 will sit closer to the USD$30,000 price point ($45,000), however time will tell what price Tesla actually puts on its new EV. 

Relevantly, several lower-cost EVs have recently entered the market around the latter price. The BYD Atto 3 starts at around $48,000 driveaway, while the MG ZS EV is priced from $46,709 driveaway.

Power and range expectations

If we look at one of the Model 2’s potential key rivals, the Volkswagen ID3, it’s likely that Tesla’s cheapest electric car could use a battery size that is around 50-60kWh. A smaller, cheaper battery pack will help Tesla cut costs.

The ID3 has a 58kWh battery and a range of approximately 409km (WLTP), while the Cupra Born has a much larger 77kWh usable battery pack that allows for a 511km battery range (WLTP). The Born is priced from $59,990 before on-road costs though, so the Tesla could very much undercut Cupra’s new electric car by some margin. 

What about standard technologies and specifications?

It’s very early to predict what will be available with Tesla’s cheaper EV offering, however it’s expected that the large central touchscreen – an iconic part of Tesla cars – will be standard. 

More expensive self-drive systems may not be standard and instead could be offered as optional extras, much like how Tesla’s enhanced Autopilot suite ($5100) and “full self driving” extended capabilities ($10,100) are currently marketed as extra-cost items for the Model 3 and Model Y.