Tesla Model 2- Expected to Launch This Year

The Tesla Model 2 is apparently already reached production stage and is et to be launched in the third quarter of 2025. Much speculation about the new model exists with Tesla keeping the model and much of its details under close wraps prior to launch.

Speculation over Price

The Tesla production process has been overhauled for the new vehicle with the goal of simplifying process and saving on production costs with the goal of making the new vehicle as affordable as possible.

The big question of price has driven wild speculation with recent reports indicating the price could be below the $16,000 mark, making it a most affordable option for buyers. At that price it becomes a serious challenger to the Chinese BYD EV’s and well as petrol engine small vehicles globally.

The production process includes a 50 000 ton giga-press unit that will press 5 vehicle frames at a time, reducing production time and cost. The body cast is reportedly a single structure reducing the number of body structure parts by as much as 50%.

If one also takes the view that the EV charging cost can be as low as 50% of the fuel cost for a combustion engine vehicle, this now presents a compelling life-time cost incentive for potential buyers.

Grand Ambitions with Entry Level EV

The stated goal from Elon Musk is that the Tesla Model 2 will see 42 million units produced and sold in its life-span, sets the vehicle as a close competitor to the Toyota Corolla that currently holds the record with 50 million produced since its launch way back in 1966.

The strategy from the global EV leader is clear: To make an affordable, reliable and energy efficient vehicle that will last for several generations.

A key element is also the resale potential of the vehicles, with fewer parts and with the battery and motor longevity enjoyed by Tesla models, it is likely to retain value better than most other entry level vehicles.

Entry Level & Entry Level Specs

With cost being the top focus of the design of the Tesla Model 2, it is unlikely that it will come with many of the additional extras such as heated seats and sun roof’s seen in prior models, however what Tesla does bring to the table is their extensive tech advances that will include their advanced safety features, as well as Teslas self-drive technology as standard.

The market is expecting a vehicle that is 20% smaller than the Model Y, and potentially a small SUV cross type design, although very little has been revealed of its ultimate shape or design.

Africa Prospects?

While Tesla has recently launched an office in Casablanca, Morocco, and announced plans for a factory in Kenitra, Morocco, the factory is not yet operational. The Kenitra factory is intended to be Tesla’s first African manufacturing plant with an output capacity of 400 000 units per year and may just be used for the new model exclusively with the African Middle East markets in mind.

With rising fuel costs and extensive investment happening in solar power generation in Africa, a smaller EV that is cheaper than a lot of other petrol engine vehicles in Africa, and right in the ballpark of the Nissan Magnite or Mahindra XUV.