Tonight Tesla should present the car that is most anticipated by everyone who does not have enough money to reach a Model 3. And yes, we are talking about the still hypothetical Model 2, of which curiously there are only rumors, this, one more from the list, it is so close and so precise that it certainly makes you think. Due to several leaks regarding this model, it seems that it would be a 37% cheaper than a Model 3, so this model 2 would enter the range below the $30,000entering to compete directly with Chinese models.
Some time ago Elon Musk slipped that his new car, still projected at that time, should sell more than all the other cars in his company combined. Obviously, this suggested that there would be a cheap and smaller model, which, in theory, should be presented today.
Tesla Model 2, the people’s car will be much cheaper
We expect Model 2 15% shorter, 30% lighter and 25% smaller battery than Model 3. We looked at how ICE compacts compare to mid-size ICE sedans and extrapolated the comparison between Model 3 and ICE mid-size sedans to reach this conclusion . pic.twitter.com/csDfINpBik
—Pierre Ferragu (@p_ferragu) February 27, 2023
The analyst firm New Street Research launched through Pierre Ferragu the following prediction about this new Model 2:
“We hope that the Model 2 [sea] 15% shorter, 30% lighter and [con] 25% smaller battery than Model 3”
It is very accurate with very precise data, but it is what the numbers that have managed to calculate based on the price projected by Tesla itself have. $21,600which in exchange should be 20,212 euros without taxes or 24,456 euros already in our country.
These affirmations would result in the large figure of a 37% price reduction compared to his older brother Model 3. The problem is that these data are for the future and not for the present, because first Tesla has to ensure production and when it becomes massive as expected, then costs will begin to drop. For this reason, it is speculated that this Model 2 will have a starting price of $25,000 for Tesla, which will be approximately 27,000 for sale, which would mean more or less a 20% profit per car, a figure that nobody matches in the industry. they call him the “Apple effect”.
Reduction of costs to the essentials
Elon Musk himself also spoke a long time ago about how Tesla faced his cars:
“Time and time again, we find parts that are not needed. They were put there just in case or by mistake. We removed so many parts from a car that did nothing”
And he wants to take this philosophy to the supposed Model 2, but raised to its maximum power, since the CEO himself has commented that they seek to halve their production costs to achieve a cost per unit of a -fifty% in terms of what a Model 3 is worth. That would put the cost of manufacturing the Model 2 below the $20,000, a challenge for sure.
Where they would not skimp is on the weight and the battery, where together they will achieve greater autonomy compared to their competitors. Ferragu affirms that by being shorter, lighter and incorporating a 46 kWh LFP battery, it could have a mileage similar to that of the Model 3. If this is the case, the Model 2 would fall within the subsidies of the American government, being eligible for the discount of $7,500literally destroying the market for Chinese cars on American soil.
As always, Tesla’s problem is not this, not even its software, it is a quality and control issue. If they manage to improve on this by offering a leap forward, for a very competitive price, then this supposed Model 2 may be a sales leader without a doubt, something like what Volkswagen is trying with the ID.2.