The $25,000 Tesla. It is the unicorn of the automotive world—often promised by Elon Musk, but never seen. Until now.
January 2026 has kicked off with a flurry of leaks giving us our clearest look yet at the car tasked with saving Tesla’s slipping market share: the entry-level EV dubbed the Tesla Model 2 2026. At AutoCritic, we’ve analyzed the spy shots and supply chain rumors to separate fact from fiction.
The Design: It’s a Hatchback
Forget the Cybertruck’s brutalist angles or the “Robotaxi” pod rumors. The latest camouflaged prototypes spotted near Giga Texas confirm a compact, practical five-door hatchback design.
It looks essentially like a shrunken Model Y mixed with a Mazda 3. This is a crucial move. By adopting a conventional hatchback shape, Tesla is aiming directly at the heart of the global market, targeting buyers currently looking at the Volkswagen ID.3 or the MG4.
Specs and that $25,000 Price Tag
How will Tesla hit that elusive $25,000 (approx. ₹21 Lakh) price point? Ruthless cost-cutting and new battery tech.
- Battery: We expect a next-generation LFP (Lithium Iron Phosphate) battery pack. It’s cheaper and more durable than current packs.
- Range: Don’t expect 400 miles. The target is likely a real-world range of around 250 miles (400 km)—plenty for city commuting.
- Performance: This won’t be a “Plaid” monster. Expect a single-motor, rear-wheel-drive setup focused on efficiency over blazing acceleration.
AutoCritic Verdict & Timeline
When can you park one in your driveway? Industry sources suggest a full reveal in late Q3 2026, with volume production unlikely before early 2027. The Model 2 is Tesla’s do-or-die attempt to democratize EVs and fight back against BYD’s dominance in the budget sector.
