Tesla's compact Model 2 crossover could enter mass production in mid-2025

[Shawn Knight]

TL;DR: Tesla is reportedly aiming to start mass production on a new electric vehicle in mid-2025 and wants suppliers to be ready, multiple sources familiar with the situation recently told Reuters. Two of the people described the new vehicle as a compact crossover. Others have said it could look more like a compact Model Y than a hatchback-style Model 3.

Some of the sources said Tesla reached out to suppliers last year to get bids for the new model, codenamed Redwood. Three sources said mass production is slated to begin in June of next year. If that timeline is accurate, then we can probably expect an official announcement sometime later this year.

All of the sources spoke anonymously due to the confidential nature of the subject.

Last year, Tesla boss Elon Musk expressed concern regarding high interest rates and the impact it could have on big purchases like vehicles. The current climate could set the stage for a new wave of low-cost electrics that could better compete with entry-level gas-powered vehicles.

According to a report from Notebook Check, Redwood (also referred to by some as the Model 2) could start around $22,000 before any potential subsidies. The vehicle might use Chinese-made batteries, however, which could disqualify it from getting a full $7,500 tax credit from the US government. Even without it, such a price point would be highly attractive to many.

The same article says the Model 2 will feature a range of around 300 miles and be built on the Tesla NV9X EV platform. The publication even claims Tesla purchased a Honda Civic at one point just to tear it down and learn how to build less expensive vehicles without sacrificing quality. That would not be totally unheard of for an automaker considering Chevrolet reportedly had a very close look at the Ferrari 458 Italia when designing its mid-engine C8 Corvette.

Tesla's fourth quarter earnings report is due out later today after the bell.

Image credit: Duren Williams, Maik Poblocki

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https://www.techspot.com/news/101634-tesla-compact-model-2-crossover-could-enter-mass.html

 

[wiyosaya]

These Tesla new vehicle articles are getting as bad as new battery technology articles

 

[Theinsanegamer]

IF tesla can make a profitable model 2 sub $30k with a 300 mile range, then every other automaker has 0 excuse for losing money on EVs.

 

[nulll]

4rth quarter 2023 as well as years summary earnings call, all disclosures within are subject to SEC regulatory controls. For those not interested in picking through 50 pages of legal text this is the Coles notes version (was Coles notes even a thing in the US?)

 

[p51d007]

But, and this is not just Tesla, will it be able to work as well as my ICE vehicle in -20 to -30 (F) weather?

 

[Mr Majestyk]

IF tesla can make a profitable model 2 sub $30k with a 300 mile range, then every other automaker has 0 excuse for losing money on EVs.

Well all know Tesla will only get to that price point because their cars quality is utter trash.

 

[nulll]

But, and this is not just Tesla, will it be able to work as well as my ICE vehicle in -20 to -30 (F) weather?

Living in a climate where that is a rather regular winter temperature for 3-4 months a year I'd point out that you'll find the bar for ICE performance to be quite low in those temps and below. Drive around any middle class neighborhood in NL Canada or certainly Scandinavia and you'll find most ICE vehicles are plugged in with a block heater on whenever parked in winter. Below -40C (the intersection point of the Centigrade and Fahrenheit systems) you're talking about specially designed hardware to have any expectation of reliability. -30C In my home city this morning with the wind chill, wandering around town today I saw a wide variety of folks broken down in older ICE vehicles as they'd almost certainly not bothered to test their battery in the last decade and its CCA finally dropped below the point where the vehicle could run.

Above 50 degrees of latitude you're talking about a block heater and gas line antifreeze of the Uber variety for ICE and having a solid understanding of the limits of the battery tech for EV. It's basically a pick your poison at this point. The end user will almost always be the determiner of any vehicles service life and long term reliability.

 

[Theinsanegamer]

Well all know Tesla will only get to that price point because their cars quality is utter trash.

They're no worse then a ford, kia, or mitsubishi product. They have problems, but we are nto talking about a 90s dodge shadow, or ford festiva, or air cooled bug, or any number of cars that barely functioned straight from the factory.

Living in a climate where that is a rather regular winter temperature for 3-4 months a year I'd point out that you'll find the bar for ICE performance to be quite low in those temps and below. Drive around any middle class neighborhood in NL Canada or certainly Scandinavia and you'll find most ICE vehicles are plugged in with a block heater on whenever parked in winter. Below -40C (the intersection point of the Centigrade and Fahrenheit systems) you're talking about specially designed hardware to have any expectation of reliability. -30C In my home city this morning with the wind chill, wandering around town today I saw a wide variety of folks broken down in older ICE vehicles as they'd almost certainly not bothered to test their battery in the last decade and its CCA finally dropped below the point where the vehicle could run.

Above 50 degrees of latitude you're talking about a block heater and gas line antifreeze of the Uber variety for ICE and having a solid understanding of the limits of the battery tech for EV. It's basically a pick your poison at this point. The end user will almost always be the determiner of any vehicles service life and long term reliability.

Yeah, no. Temps in wintertime chicago, even during this winter freeze, are FAR from -40C weather you are talking about. The population above 50 degrees latitude is TINY compared to the tens of millions that live between 40-42 alone. The chicago polar freeze, according to local news, resulted in temps around -10 at the airport. -12C. Not -40. And it was wrecking havok on EV batteries, because anyone who loves in an apartment or condo or many of the older urban homes cant part inside, there is no such thing. If EVs are going to need to be plugged in whenever it gets this cold, we are in for a very bumpy ride.

And in the winter, my gas tank doesnt shrink by 50% or refuse to fill up. Despite being stuck in the same chicago like weather, it turned on and ran just fine, while sitting outside. Odd that.....

 

[wiyosaya]

Tesla warns of 'notably lower' sales growth in 2024

It is the latest car company to forecast sagging demand for electric cars.

www.bbc.com

 

[sreams]

But, and this is not just Tesla, will it be able to work as well as my ICE vehicle in -20 to -30 (F) weather?

Interesting that Teslas have been around now for nearly 12 years and this is suddenly now a topic. Too many people just parrot what the media tells them to to be outraged about.

 

[Dr Roboto]

Interesting that Teslas have been around now for nearly 12 years and this is suddenly now a topic. Too many people just parrot what the media tells them to to be outraged about.

I would say there is likely a two-fold reason for this.

First, some of it is just EV bashing. It is an obvious weakness for an EV and thus makes it an easy nit pick for EV detractors.

Second, I expect that it also has to do with the move from high-end luxury EVs to lower-cost "every man's" type of EV. Tesla and other higher end EV models (the real driver of the EV market to this point) are mostly owned by people that almost certainly have a garage or a second car or more than likely live in a warmer climate (actually maybe all 3). Cold weather is really not much of a concern for them. However, when you get into the Model 2's price, you are now talking about cars that likely are not garage kept, have no overnight charging on the street, and are the only mode of transportation. Things like significant battery loss in cold weather is a real concern that cannot be ignored.

 

[BuckarooBonzaii]

Part of the problem was the EV craze when experts talked about Climate Change and we need to save the planet. Government made mandates, companies jumped in and people did their part only now to realize the reality of EVs.

 

[toooooot]

IF tesla can make a profitable model 2 sub $30k with a 300 mile range, then every other automaker has 0 excuse for losing money on EVs.

Most companies lose money on every car when they start EV production.
The way I understand it is to perfect the production line while also optimizing other things.
This puts in perspective how long the history of ICE cars production. And it also gives hope that EVs
can get much cheaper over time.

 

[Bobbydpue]

No Tesla timeline has been accurate so far. I would add, at a minimum, 18 months to every estimate if not 24 months.

 

[Bobbydpue]

Part of the problem was the EV craze when experts talked about Climate Change and we need to save the planet. Government made mandates, companies jumped in and people did their part only now to realize the reality of EVs.

EV's are all about climate change. In places were power is cheap and fuel is expensive EVs make sense just for cost. For those that have good charging infrastructure and can charge their car wherever they park EVs are just more convinient. It's not all about saving polar bears.

 

[Bobbydpue]

IF tesla can make a profitable model 2 sub $30k with a 300 mile range, then every other automaker has 0 excuse for losing money on EVs.

How are you presenting an arguing with speculated data? Producing a well build and fully featured EV at a low price still hasn't happened. I doubt Tesla will be the first car company that sells a well built and fully featured EV at a reasonable price. It's not something they've ever done before.

 

[gdavid65]

. The population above 50 degrees latitude is TINY compared to the tens of millions that live between 40-42 alone.

Biased much? Below 40th Parallel North probably covers half the world's population, who do not suffer below freezing temps all that often.

Where I live for instance it never gets below 5deg C any day of the year, and no, I don't live right near the equator.

I charge from the sun at my home that gets plenty of daylight all-year around so I get close to free fuel and free electricity. And I am no longer tied to some largely middle-eastern cartel which personally I think is a good thing.

But I can agree that EV's are not great for some parts of the world, and do suit all use-cases.

 

[Bobbydpue]

They're no worse then a ford, kia, or mitsubishi product.

That would be fine if Tesla cars were priced like an economy car, but they aren't.

 

[Underdog]

".........The vehicle might use Chinese-made batteries,............."

Do you feel lucky, punk?