What has Tesla officially announced about an affordable 'Model 2' or equivalent vehicle and its target price?

Checked on January 18, 2026
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Executive summary

Tesla has not released an official product announcement that names a “Model 2” or pins a final retail price; the clearest, repeatedly stated company objective in public reporting is a roughly $25,000 target for a lower-cost vehicle once certain production efficiencies are achieved [1] [2]. Numerous outlets and fan sites have filled the vacuum with conflicting launch dates and price tags—some claiming $25K starts, others hyping much lower figures—but those are either summaries of Musk’s aspiration, speculative reporting, or unofficial leaks, not a confirmed Tesla price announcement [3] [4] [5].

1. What Tesla has officially said — the narrow truth

There is no Tesla press release in the provided reporting that officially unveils a car called “Model 2” with a concrete MSRP or production start date; in fact, several sources emphasize that Tesla never formally named or confirmed such a model and that “Model 2” is a media/fan shorthand rather than an official badge [2] [6]. Public communications from the company and CEO Elon Musk that are reported by outlets indicate an ambition to build a lower-cost, “next‑gen” platform and to hit a price point in the ballpark of $25,000 once new manufacturing methods and scale are in place, but that stops short of a formal launch or guaranteed retail price [1] [7].

2. The $25,000 target: aspiration, not contract

Multiple industry summaries and fact-checking pieces attribute a $25K target to Tesla executives and Musk as a strategic goal for an affordable EV—often framed as “around $25k” contingent on production efficiencies rather than an announced sticker price [1] [8]. This $25K figure has become the de facto baseline in reporting because it was repeatedly mentioned in company guidance and investor- or analyst-facing commentary, but the reporting stresses it is a target, dependent on factors such as new manufacturing processes and battery cost improvements rather than a guaranteed consumer price [1] [8].

3. The rumor mill and conflicting reports

After the $25K target entered public discourse, many outlets and blogs ran with it or amplified bolder claims—some saying the car would “start at just $25,000” or even undercut that by large margins—while others predict prices closer to $30K–$35K once inflation, regional differences and feature levels are considered [4] [5] [8] [9]. These variations reflect differing source quality: established outlets often caveat the figures as targets or analyst estimates [3] [8], whereas enthusiast blogs and some later summaries present price points as fact without clear Tesla confirmation [5] [10].

4. Why definitive pricing remains elusive

The ambiguity stems from several tangible drivers: Tesla’s stated plan hinges on next‑generation manufacturing and supply‑chain localization to reach lower unit costs—factors that can shift timelines and economics [1] [8]; the vehicle has been called different project names and the company may choose a different commercial name, complicating media tracking [2]; and some reports even suggest internal reprioritizations or cancellations discussed at Tesla meetings, none of which constitute a formal consumer announcement [2]. In short, the $25K figure lives more in corporate strategy and analyst expectation than in a customer-facing MSRP set by Tesla [1] [2].

5. Bottom line: what can be stated with confidence

Based on the available reporting, the only firmly supportable statement is that Tesla has publicly expressed a goal to produce a lower‑cost car at roughly $25,000 when new production efficiencies are realized, but Tesla has not formally announced a vehicle named “Model 2” nor published a guaranteed starting price for consumers [1] [2]. Claims of a concrete $25,000 launch price, sub-$20K pricing, firm launch dates, or detailed specs in the provided sources are either speculative, third‑party reporting, or post‑hoc summaries—not an official Tesla MSRP announcement [4] [5] [10].

Want to dive deeper?
What specific manufacturing technologies has Tesla cited as necessary to reach a $25,000 vehicle price?
How have analysts modeled the likely MSRP ranges for Tesla’s affordable vehicle under different battery-cost scenarios?
Which public statements from Elon Musk or Tesla executives reference a $25,000 target and in what context?