A prototype car recently spotted at Tesla’s Texas factory has brought new attention to the company’s plans for a more affordable electric vehicle. Many believe this car could be the long-rumored Model 2 or Model Q. Tesla has said it’s still on track to start production in the first half of 2025.
Prototype Seen at Giga Texas
Photos from Giga Texas showed a test car without body panels or a roof. The shape was close to a Model Y but smaller. It had the same wheels as the Model Y too.
The missing parts suggest it’s still early in development. A similar car had been seen at Tesla’s Fremont site in the past. The look and setup match Tesla’s plan for a smaller, cheaper car that could bring in new buyers.
Tesla said on its April 22 earnings call that it’s sticking with its plan. Production of the affordable model could begin as early as June. CFO Vaibhav Taneja and VP of Vehicle Engineering Lars Moravy both gave that estimate. In the company’s Q1 2025 update letter, Tesla said these new cars will be built using current manufacturing lines. That helps them move faster and avoid building new systems from scratch.
But not all sources agree. Four days before the earnings call, Reuters reported Tesla might delay the U.S. release to late 2025 or even early 2026. Their report was based on unnamed sources. They said Tesla is dealing with production issues and shifting focus to its upcoming autonomous vehicle, the Cybercab.
Right now, Tesla hasn’t changed its official position. The latest public update still points to a mid-2025 start, maybe even June. But Tesla has changed timelines before, and building a new vehicle at scale is always complicated. Delays are still possible.
What the New EV Might Look Like
Tesla hasn’t shared full specs yet. But the new model will combine parts of the Model 3 and Model Y platforms with ideas from Tesla’s next-gen platform. That platform was once tied to the canceled $25,000 Model 2, known by the internal names NV91 and NV92.
The design is said to stay close to the Model Y, with only slight changes in the battery, drivetrain, and chassis.
Price is still unconfirmed. But most analysts say Tesla is aiming to keep it under $30,000. That would be well below the current Model 3, which starts at $42,490. Federal tax credits could push the cost even lower for buyers.
To save time and money, Tesla wants to build this model on its existing lines. The company’s current factories can already produce close to 3 million cars per year. That gives Tesla a chance to grow production by more than 50 percent from 2023 levels.
Tesla had earlier planned a whole new platform for this model. But those plans were dropped. Instead, the company is focusing more on the Cybercab. Using current systems makes production faster, even if it means fewer cost cuts.
Tesla’s future growth could depend on this model. Right now, most people can’t afford a new Tesla. A car priced under $30,000 could change that. It would give more people a way to switch to electric and help Tesla reach more markets.
The move also helps Tesla respond to growing pressure from other companies. BYD, a Chinese EV maker, passed Tesla in sales during the last quarter of 2023. A cheaper Tesla could help the company compete better.
Investors are watching closely. Some see this model as the most important one since the Model 3. But others are doubtful Tesla can hit its timeline. The mixed reports have added to that debate.
This car also ties into Tesla’s bigger mission. The company wants to speed up the switch to clean energy. Making EVs affordable is a key part of that goal.
Tesla says it’s almost ready. A working prototype is on the ground. Production could begin in weeks. But it wouldn’t be the first time the date slips. For now, all eyes are on June.
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