The long-rumored next generation affordable Tesla model appears to be ready to hit the market soon.
Samuel Alejandro García Sepúlveda, the governor of Nuevo León, Mexico, where Tesla's fifth Gigafactory will be located, has reportedly stated that Tesla has completed the design work for the new Model 2. He suggested it will become the "best" and "most affordable" electric vehicle globally.
Sepúlveda said, although the exact start date is unknown, all the necessary environmental and energy permits for the Mexican Gigafactory have been secured, ready to break ground at any time.
At an Investor Day event in March this year, Tesla officially announced the fifth Gigafactory, to be situated on the outskirts of Monterrey, the capital of Nuevo León. Rumors have circulated suggesting this factory will primarily produce the new Model 2 and autonomous taxis.
Tesla previously indicated hopes to outdo the nine-month record from start to production held by the Shanghai factory, intending to complete the Mexico factory construction in less time. However, four months since the official announcement, Tesla's Mexican factory construction has yet to start, possibly waiting for the government to issue permits.
According to a late-June report, sources close to Tesla's supply chain reportedly claimed that Tesla underestimated the difficulty of building a factory in Mexico. The initially planned completion by next summer seems unlikely, with the new factory expected to be operational by the first quarter of 2025.
It's widely expected that the new Tesla model will be officially released after the completion and operation of the Mexican factory.
The governor of Nuevo León did not discuss specific specifications and designs for the Model 2 in his speech.
Elon Musk announced as early as Tesla Battery Day in 2020 that Tesla would produce a $25,000 (approximately 160,000 yuan) electric vehicle. Through vertical integration and more robust battery production technology, the cost of electric vehicles would be reduced by 50%.
Musk even hinted then that this $25,000 electric vehicle would have its steering wheel removed, capable of fully autonomous driving.
Ever since then, rumors have circulated about this new car. In early 2021, media outlets suggested that this affordable new car might be named Model 2, a hatchback sedan smaller than the Model 3. Later rumors speculated the new car could be called Model Q.
At Tesla's Investor Day in March, Musk showcased the silhouettes of two mysterious new models in the "Master Plan 3" slideshow, one a sedan and the other potentially a hatchback or a small SUV.
Rumors suggest that the design of Model 2 closely resembles a downsized Model Y, possibly the small SUV in the slideshow.
In addition, in "Master Plan 3," Tesla also revealed a compact battery size that might be mounted on Model 2. This model will use an LFP battery pack, with an average battery capacity of 53 kilowatt-hours, 25% smaller than the current battery capacity mounted on the Model 3. However, due to the shorter wheelbase of Model 2, the car weight might also be reduced by 30%. Therefore, despite the smaller battery capacity, the driving range might be comparable to the entry-level Model 3 currently on sale.
