Tesla Announces Dates for Small EV Line Up: Model 2 and Model Q


Key Points

  • Tesla announces the launch of a new small electric car range including a compact SUV, set to hit the market in the second half of 2025.
  • With prices starting under $USD25,000 ($AU38,000), Tesla's new model is designed to bring affordability to the EV market using its innovative manufacturing process.
  • Tesla's latest model isn't just for the U.S. market; the company is planning a global expansion, eyeing production facilities in various right-hand-drive countries.

Tesla has announced plans to expand its electric vehicle (EV) lineup with a new range of small, more affordable EVs slated for release in the second half of 2025. This strategic move signifies Tesla's entry into the budget-friendly market segment, currently dominated by more established automakers.

Tesla's New Small EVs Affordable and Innovative

tesla innovation

The upcoming range will include a small car and a compact SUV, catering to the growing global demand for more economical and versatile electric vehicles. This echoes the strategy of traditional automakers, like Toyota, who offer both the Corolla hatchback and the Corolla Cross to appeal to a broader demographic.

There's speculation that these models could potentially be named 'Model Q' and 'Model 2', positioning them below the Tesla Model Y and Tesla Model 3 in the company's lineup.

Anticipated to be Tesla's most affordable options to date, they are expected to start at prices under US$25,000 (approx. A$38,000).

tesla small car elon musk

Elon Musk, Tesla's CEO, emphasied the innovative production process behind these vehicles, which aims to reduce manufacturing costs by half compared to the Model 3. Initially, production will be based near Tesla's headquarters in Austin, Texas, before expanding internationally.

Tesla Prepares for Production and Global Launch

During a recent earnings call, Elon Musk stated, "I'm often optimistic regarding time ... but our current schedule says we will start production towards the end of 2025, sometime in the second half. That's just what our current schedule says."

The Austin facility will be the genesis of production, eventually expanding into Mexico and potentially exploring right-hand-drive markets like India, Indonesia, and Thailand.

Zecar's Take

As Tesla gears up for the launch of these small EVs, the world will be watching closely to see how the company can transform the landscape for electric vehicles yet again.

With a focus on affordability and global market penetration, with these new models Tesla is posied to make electric mobility accessible to a wider audience. This will be particularly true in Europe and the United States where chinese EVs have yet to establish a meaningful position in the affordable EV market.

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