Tesla Model 2 coming as soon as 2022

The Tesla Model 2 could be in production in China and on sale as soon as 2022.

Speculation about Elon Musk’s US$25,000 ($32,000) small EV arriving sooner than expected has been raised by information leaking out of China.

A Tesla environmental report in relation to its new Shanghai Gigafactory allegedly states a compact model based on the Model 3 will start production as soon as 2022.

Chinese reports say the vehicle was approved by Chinese authorities in September 2020 and that product verification is to be completed by March 2021.

At the same time the global news service Reuters is reporting Tesla is ramping up plans for a Shanghai or Beijing-based design studio.

Musk first talked up a Chinese design studio 12 months ago.

The news agency speculates the Model 2 – as it is commonly dubbed – would emerge from this studio, be engineered in the USA and built in Shanghai as demand would be high in China.

It is expected other models would also be developed in Tesla’s Chinese facility, some of them potentially aimed specifically at the world’s biggest car market.

“A compact Tesla car would do well in China, as well as the rest of Asia and Europe,” Yale Zhang, head of Shanghai-based consultancy Automotive Foresight, told Reuters. “It could potentially put a serious dent in sales of cars like Toyota’s Corolla and the Volkswagen Golf.”

There has been no comment on all this speculation from Tesla.

Musk most recently referenced the compact car in November when he talked up a hatchback for Europe, while at Tesla’s Battery Day in September he promised  an “affordable electric car” priced from US$25,000 would come as soon as 2023.

“It was always our goal to make an affordable electric car. And we’re confident that in around three years from, now we’ll be able to make a very compelling US$25,000 electric car that’s also fully autonomous,” Musk said.

“We are confident that long-term we can design and manufacture a $25,000 electric vehicle that will be compelling,” he said.

“This has always been the dream since the beginning of the company. Our first car was an expensive sports car, then a slightly less expensive sedan, and then finally a mass-market premium vehicle.

“But it was always our goal to make an affordable electric car.”