Tesla Model 2 to be a small SUV, perhaps named Model Q

More details of Tesla’s upcoming entry-level model have emerged, including the revelation the long-rumoured Tesla ‘Model 2’ could be a downsized SUV cut from the same cloth as the next Model Y.

We already know Tesla is looking to downsize the platform for its next-generation Model 3 sedan and Model Y SUV to lower production costs for its mid-size models, but a new report out of China citing anonymous Tesla sources claims to have the inside word on the future volume-seller.

“This low-priced model is a small Model Y,” sources told 36 Krypton.

“Tesla is building an annual production capacity plan of up to 4 million vehicles.”

Those four million vehicles have already been confirmed to be produced across the US, Mexico, China and Germany, with the bulk of the volume set to come from the pending Monterrey factory in Mexico.

Few other details of the future model were divulged in the Chinese report, however, the ‘Model Q’ nameplate was refloated as a possible title and suddenly looks more appropriate given the SUV revelation; Model 2 would be more fitting for a compact hatch or sedan given the identity of the Model 3.

Speaking at the company’s investor day last month, Tesla engineering vice-president Lars Moravy alluded to a 2025 debut and/or release for the US car-maker’s ‘next-gen’ model, and that Tesla was working as quickly as possible to get the budget-friendly model to market.

“We expect that to be a huge-volume product and we’re going to move that quickly over the next couple of years,” he said.

Odds are the ‘Model Q’ will be underpinned by a shrunken version of the next Model Y and Model 3 platform and could ultimately serve as the icebreaker for the new architecture, which is said by Tesla executives to be simpler and cheaper to make – a key requirement in reaching a budget-friendly price point.

A smaller and cheaper Tesla SUV would obviously cost a lot less than the Model Y (from $68,900), but whether it can match the circa-$45K starting price of small Chinese electric SUVs like the MG ZS EV, BYD Atto3 and others to come remains to be seen.

It’s also unknown whether the new platform will result in price reductions for the either the next-gen Model Y or Model 3, but we remain sceptical given EV demand continues to outstrip supply.

Digital images: KDesign

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