The US$25K Tesla Model 2 confirmed – Elon Musk promises new ‘affordable electric car’ in 2023

Tesla could have a US$25,000 electric vehicle on the road as early as 2023.

Company founder and CEO Elon Musk is promising an “affordable electric car” is coming soon.

Work has clearly begun on the vehicle, already being referred to as the Tesla Model 2, with Musk promising his company’s cheapest-ever price tag would unlock EV ownership for a new audience.

The cheapest Tesla currently on sale in Australia is the circa-$74K Model 3, but based purely on currency conversions, the new model could be as cheap as $34K in our market.

While battery and motor specifications are yet to be confirmed, Musk has promised the new model will also offer full autonomy.

“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 says.

Details remain thin on the ground, but Musk has previously suggested the new model would take the shape of a “European-style hatchback”, and today promised it would remain compelling, no matter its price point.

“We are confident that long-term we can design and manufacturer 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.”