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
- Price: $24,990 before federal tax credit ($17,490 after $7,500 credit)
- Range: 260 miles (rear-wheel drive)
- 0-60: 6.0 seconds
- Cargo: Hatchback design with 22 cu ft of storage
- Charging: 15 minutes for 100 miles at Supercharger
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.