New Model 2 competitors to be priced $25,000 or less but Tesla has a head start
While Tesla is preparing to announce and launch its first mass market electric car, tentatively named the Model 2, other automakers are working on its direct competitors.
The Tesla Model 2 price is expected to be below the proverbial $25,000 mark that would make EVs truly affordable, but newly teased cars from VW, NIO, and Ford will compete for market share head on with very similar pricing.
These are not some pie in the sky boardroom concepts, too. The first car in NIO's affordable Firefly brand lineup actually appeared in spy shots already, showcasing what looks like a tall hatch or compact crossover under the camo. NIO is also preparing a direct Model Y Juniper competitor, for which it reduced production cost 10% compared to Tesla's bestselling vehicle. Despite its cheaper prices, though, the Firefly brand will come with NIO's big advantage - swappable batteries - as the company builds out its station network that allows battery swaps in a few seconds time.
Meanwhile, Ford has its own take on the Tesla Model 2 that will also be a compact crossover to be assembled in the US with LFP batteries. The cheapest Ford EV will cost around $25,000 as well, but it would arrive a year after the Model 2 hits the market.
Last but not least, the world's third-largest EV maker is going even further downmarket to the $22,000 price tag with a small VW ID.1 electric car that will be shoehorned in the dimensions of the current Polo, but is said to land in 2027. The larger VW ID.2all with 280-mile range will launch earlier, in 2026, but it may start from about $27,000.
Despite all these potentially formidable competition, the Tesla Model 2 will seemingly be a year or two earlier on the market, while its price with federal or state tax credit subsidies might beat them all, too.
Meanwhile, Elon Musk is on record saying that the Model 2 will be a "revolution in low-cost manufacturing," and analysts are expecting Tesla to churn at least 500,000 of those in 2026 alone. Tesla, however, will be challenged by the world's largest EV maker BYD, which already sells a few models in that same budget price range.
