With Tesla Investor Day in full swing, fans are fixated on one thing above all else: Elon Musk’s plan to introduce a cheap EV with a lower starting price than the Model 3. The Tesla Model 2, as the model will likely be called, could cost as little as $25,000, much less than the marque’s current budget EV. So, will the Tesla Model 2 cruise onto your driveway soon? 

Is Tesla coming out with a Model 2?

Tesla will likely formalize plans for a new low-cost EV soon. The latest buzz surrounds Musk’s intent to build a budget-friendly model with a smaller price tag than the Model 3. However, Reuters says that Elon Musk’s electric automaker hasn’t released any new details on the so-called Tesla Model 2. 

Musk reportedly shelved plans to produce the low-cost EV model in 2022. However, the recent Tesla Investor Day outlined plans to cut production costs. Moreover, Elon Musk and Tesla executives expanded on investments to help the company reach its 20 million vehicle goal by 2030, including standardized factories and a new plant in Mexico. 

Part of Tesla’s strategy for future mass market dominance will likely include the Tesla Model 2 or a similar low-cost EV. A cheaper option than the company’s Model 3 could open the door to previously untapped consumer bases. “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” Elon Musk said on the subject.  

How much will the new Tesla Model 2 cost?

The Tesla Model 2 will target a starting price of around $25,000, should the automaker be able to cut production costs. Not a Tesla App says the $25,000 point has been one of Tesla’s targets for years, but the automaker’s track record suggests it might be a lofty goal.

For instance, the $35,000 starting price was the original target for the current budget Tesla, the Model 3. However, Tesla says a new Model 3 starts at around $42,990 for the entry-level Rear-Wheel Drive trim.  

When will the Model 2 come out?

Not a Tesla App estimates that the Tesla Model 2 won’t arrive before 2024. Considering that it’s an all-new vehicle, it’s not ridiculous to think the potential low-cost option could require years to start sales. 

What will the Tesla lineup look like in 2024?

As of right now, Tesla will likely continue to sell its core four in 2024: the Model S, 3, X, and Y. Moreover, the razor-sharp new Tesla Roadster should hit roads by the beginning of 2024. Additionally, the seemingly low-resolution Cybertruck should also be available. 

Still, if the electric automaker can pull it off (and it is a sizable if), a low-cost Model 2 could enter the lineup. I’ll let you add a No. 2 to the S, 3, X, and Y lineup. It might be an indication of what Elon Musk and Tesla-Stans think of the electric vehicles. 

What do you think about the prospect of a cheap Tesla EV? Would you want one? Tell us in the comments below!