Tesla might release $25,000 electric car in 2023

Elon Musk has been teasing a $25,000 Tesla for quite some time now. But details around the new entry-level Tesla are still scarce. In a recent company announcement, Musk said the following: “Tesla will make a compelling $25,000 electric vehicle that is also fully autonomous.” The $25,000 Tesla electric car is often called “Model 2” and was referred as being a hatchback. But rumor says that the Model 2 name is not the actual one.

Regardless of the name, the new Tesla is rumored to be built in China and geared towards that market. Another report says that in 2020, Tesla has started taking design submissions for its Chinese-made small electric car. Same insiders mention an autonomous model featuring the latest Full Self-Driving Beta software. Despite its affordable price, Tesla plans to develop an electric vehicle that would challenge the Chinese competitors.

A more traditional compact Tesla that’s primarily designed for Full Self-Driving in the United States is also in the books. A fully autonomous model would allow Tesla to enter new segments, like fleets of affordable Robotaxis which can operate within geofenced locations. The GM Cruise showed in 2018 that such a solution is not that far fetched. Tesla also unveiled a similar concept for the Model 3 back in 2019 when it held its Autonomy Day event.

If Tesla can produce an affordable car with an impressive range, as well as some of the autonomous tech, then it could be onto a winner.