Tesla Model 2 takes shape

Tesla’s most affordable electric vehicle is currently the Tesla Model 3, which starts at under $60,000, but there’s a new EV coming from the disruptive US car-maker and – unlike next year’s all-new Model Y – it’s set to slash the price of admission by almost half.

Tesla CEO Elon Musk announced plans for a $US25,000 ($A33,700) small EV in mid-2018 and since then it’s been confirmed that development is progressing and it will be a global model.

But two burning questions remain: What will it be called and what will it look like?

Unofficially dubbed the Tesla Model 2 (a name that Elon Musk has since stated is unlikely to be used), the all-new electric hatchback is being developed and designed in China but will almost certainly be sold in Australia.

In terms of the design, there have been no spy images to guide speculative computer renderings of the new model, but this latest collection includes everything from a brutal Tesla Cybertruck-inspired hatch with severe angles and sharp edges, to more conventional Tesla Model 3-inspired hatchbacks that leverage existing body parts including door-handles.

In 2020 Musk said Tesla would release its first small EV in “about three years”, earmarking a 2023 debut.

Given the delayed roll out of new Tesla models generally – including the new Roadster and all-new Cybertruck – and in Australia, where the upgraded Model S and Model X may not arrive until 2023, the Tesla Model 2 may not go on sale here until 2025.

Which EVs the new Tesla hatchback will compete with at that stage – let alone how much it will cost – remains anyone’s guess, but a number of circa-$35,000 small EVs are due to launch in Australia in 2022, including the GWM ORA Cat hatchback and BYD Yuan Plus small SUV.

Vital statistics for the Model 2 – which is expected to be exported from Tesla’s Chinese Gigafactory in Shanghai, where all Model 3s are now made for Australia – also remain unknown.

But Musk has previously stated that a range of “…less than 250 miles [402km]” would be “unacceptably low” for an EV brandishing Tesla badges.

The vehicle’s size and weight will determine the capacity of its battery, but expect a circa-50kWh pack potentially using a new type of battery cell that Tesla says could deliver a 16 per cent increase in efficiency, while being cheaper to manufacture.

It’s not clear whether the small EV will offer the same high-end features as other Tesla models, such as a glass roof, a large 15-inch screen or even fancy doors, as shown in images via TheClunkerJunker.com, but it’s almost certain to retain the brand’s minimalist cabin layout.

After the original Tesla Roadster made its debut in 2008, the US electric car-maker has launched two sedans – Model S and Model 3 – and two SUVs in the Model X and Model Y, with the Roadster MkII, Cybertruck and Semi commercial also on the way.

But the upcoming small car will undoubtedly be the most important model in Tesla’s fight to retain EV market share as mainstream car-makers ramp up their electric vehicle sales strategies.

During its Battery Day presentation in September 2020, Musk stated that his company was “confident long term we can design and manufacture a compelling $25,000 electric vehicle”.

“It really is our goal to make an affordable electric car and I think probably in about three years we are confident we can make a very compelling $25,000 electric vehicle that is also fully autonomous,” he added.