Tesla has officially unveiled the Model 2 — its long-awaited $25,000 electric vehicle that promises to bring EVs to the mass market. First deliveries begin in Q4 2026.

Specifications

What's Different

The Model 2 uses Tesla's new unboxed manufacturing process, reducing production costs by 50%. The interior is minimalist even by Tesla standards — a single 10-inch screen, no stalks, and fabric seats standard.

Market Impact

At $17,490 after credits, the Model 2 is cheaper than most new gas cars. This could accelerate EV adoption dramatically. Competitors are scrambling — GM, Hyundai, and VW are all rushing sub-$30K EVs to market.