NEWS / Technology

Tesla's New Ride: The Model 2

Published Sep 12, 2025

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Summary:

1. Elon Musk says the Model 2 will roll out in early 2026 and be produced at the company’s new Mexico Gigafactory.
2. The car is smaller than a Model 3, gets ~250 miles of range, and comes packed with Tesla’s new self-driving hardware suite.

Tesla (TSLA+1.73% ) just pulled the cover off its long-awaited “Model 2” – and it’s turning heads for one big reason: the price. The new compact EV will start at just $25,000 – a major milestone for Tesla.

Target release: Early 2026
Production: Tesla’s new Gigafactory in Mexico
Size: Smaller than the Model 3
Range: Around 250 miles per charge
Features: Equipped with Tesla’s latest self-driving hardware suite

“Why it matters: That price point is a direct shot at gas-powered cars and budget EV makers like BYD and Nissan.”

If Tesla can mass-produce it and hit that price, it could open up EV adoption to millions of new drivers. The market liked what it heard – shares of Tesla popped after the announcement, and competitors like
Ford (F -2.1% ) and GM (GM -1.7% ) saw their stocks slide.

👉 But here’s the fine print… Tesla has a history of bold promises and long delays 🤔 (Cybertruck, anyone?). So while the hype is real, investors and car buyers alike are taking a wait-and-see approach ⏳.

📈 This could be Tesla’s iPhone moment — a tipping point for mass EV adoption.

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