Finally, a Tesla for the masses! 2024 Tesla Model 2 teased as cheaper electric car undercutting Model 3 and Model Y

Tesla has shown a shadowy teaser image of its next model, believed to be the more affordable Model 2 that could bring pricing for its electric vehicles (EVs) way down.

Stopping short of confirming the Model 2, Tesla boss Elon Musk talked about two new models at the 2023 Tesla Annual Shareholder Meeting overnight, while also showing the image above.

“People always want to know what our next product is, but this is not the time to … we obviously need to have a proper dedicated product launch,” he said.

“I just want to emphasise we are actually building a new product; we are actually designing a new product; we aren’t just sitting on our hands here.

“There are two new products that I think you will be very excited about, and both the design of the products and manufacturing techniques are head and shoulders above anything else present in industry.”

Musk has flagged a mass-market, entry-level Tesla as far back as 2020 stating at the time that “this has always been the dream since the beginning of the company,” and earmarked a three-year timeframe for launch of such a model.

With COVID-related slowdowns and semiconductor shortages aside, this puts the mooted Model 2 next on Tesla’s agenda after Musk also confirmed the Cybertruck will begin deliveries later this year.

But what can we expect from the new cut-price Tesla?

Well, a starting price of around $US25,000 has been bandied about in the past, which would mean a price of $A37,500 if directly converted.

This would make it the most affordable electric car on sale in Australia, undercutting budget rivals from China like the GWM Ora Cat (from $44,490 drive-away), MG4 (from $44,990 before on-road costs) and BYD Atto 3 (from $48,011).

This would also position it well below the Model 3 mid-size sedan, which opens at $60,900, and is far and away the most popular EV in Australia this year with 8819 sales.

In fact, the Model Y small SUV is also selling strongly, amassing 5264 new registrations so far in 2023.

However, Musk has even bigger plans for the two new models, setting a production target for both models well north of the pace the Model 3 and Model Y have already set.

“Just these two new products alone, I would say that we will probably make – obviously this is just Elon’s guess, so don’t sue me – Elon’s guess is that we will probably make in excess of five million units a year of these two models combined,” Musk said referring to himself in third-person.

For context, in 2022, Tesla produced around 550,000 and 750,000 examples of the Model 3 and Model Y respectively.

Tesla has also flagged in the past the new entry-level model will make use of a 53kWh battery, while also utilising a more streamlined manufacturing process that should save on both time and cost.