Key Takeaways
1. Tesla’s main designer downplayed rumors about the budget-friendly Model 2, confirming it’s not just a hot hatchback but a smaller version of the Model Y.
2. The Model 2 is expected to have impressive specs, including a 250-mile range and a 54 kWh battery, with production likely starting at Tesla’s Gigafactory in Texas.
3. Tesla plans to focus on the Model 2 after the release of the Model Y Juniper, with a reveal event possibly in mid-2024 to boost holiday sales.
4. The Cybercab, a two-seater priced under $30,000, is part of Tesla’s strategy to introduce more affordable vehicles, potentially benefiting from federal incentives.
5. A disguised vehicle resembling a smaller Model Y may be a prototype for testing or part of Tesla’s upcoming robotaxi platform, set to operate in Austin.
When Tesla’s main designer, Franz von Holzhausen, mentioned that the rumors about the least expensive Tesla Model 2 were greatly overstated, he was serious.
New Vehicle on the Horizon
Tesla has chosen to first reveal the Cybercab, a two-seater made with some parts from the Model Y. Elon Musk has reassured investors during multiple quarterly calls that a new, budget-friendly car is still on schedule for a 2025 launch. Initially, Tesla’s most economical vehicle was referred to as the Model 2 or Project Redwood. Musk explained that it would be a “smaller, for sure” version of the Model Y, rather than a hot hatchback.
Impressive Specifications
The expected specifications for the Model 2 are believed to surpass those of the urban-focused Cybercab. This includes a 250-mile range powered by a 54 kWh battery and larger dimensions along with a rear bench seat. Recently, a drone flew over Tesla’s Gigafactory in Texas, showcasing various activities at the extensive site, including new production lines and an expanded paint shop. These enhancements are likely aimed at preparing for the upcoming 2026 Model Y Juniper facelift production, scheduled for release next month. However, some of these facilities may also be set aside for initial production of the more affordable Tesla Model 2.
Exciting Developments
Interestingly, the drone footage captured a disguised vehicle resembling a smaller Model Y. Now that Tesla has unveiled the Juniper refresh, they have little to hide about the Model Y. The high-performance version of the Juniper is not expected until fall. Once the release date for the Model Y Juniper passes, Tesla can shift its focus towards the Model 2. The reveal event for this budget-friendly vehicle might occur in the second or third quarter. The aim will be to ramp up production for full deliveries during the crucial holiday season, enhancing Tesla’s sales figures with the anticipated Model 2.
The Cybercab is projected to be priced under $30,000, and the Model 2 could follow suit, especially with potential federal incentives, making it very appealing to buyers. Tesla might hold off on launching it until at least the fourth quarter to avoid impacting Model Y Juniper sales.
Potential Uses for the Disguised Vehicle
Alternatively, the compact-looking vehicle that resembles the Model Y could just be an illusion or a test prototype for various engineering tests. Elon Musk has mentioned that Tesla plans to introduce its robotaxi platform with owned vehicles operating on unsupervised FSD in Austin this June, suggesting that this camouflaged vehicle could also be part of that pilot program.
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