Tesla Model 2 Redwood to be released as compact crossover on Honda Civic-inspired NV9X platform for cheaper cars

Tesla's cheapest Model 2 is codenamed "Redwood" and may enter mass production next year, as per a leaked quote requests it reportedly sent out to major suppliers. This probably means that a Model 2 announcement is coming this year, and Tesla may even mention something about it at today's earnings call to stave off any potential stock price slump if it posts slimming margins.

According to insider sources, Tesla's first cheap mass market electric car will be built on a brand new platform dubbed NV9X, though it's not clear what this abbreviation means other than Next-gen Vehicle as Tesla has already referred to it as.

Tesla Model 2 Redwood design

Besides the Tesla Model 2 release date, which was previously thought to have been pushed to 2026, the sources also confirmed what the Redwood project design will look like. Apparently, the Model 2 is styled like a "compact crossover," and that claim coincides with previous rumors that it is designed like a compact Model Y, rather than a hatch version of the Model 3.

This leaves the naming question up in the air, as Tesla may call it something different than Model 2, and actually use a letter to slot it in the Model X and Model Y naming scheme, being a compact crossover and all.

Model 2 Redwood price and release date

Elon Musk is on record saying that the Model 2 will be a "revolution" in low-cost vehicle manufacturing. Built in Texas, Berlin and, possibly, Shanghai Gigafactory, the Model 2 is expected to utilize Tesla's advanced gigacasting assembly method, as well as sport a 54 kWh LFP battery. The Model 2 development process may have already been finished and Tesla is now giving component orders to its main suppliers that indicate a production start of June 2025.

Initially, Tesla was going to build the Model 2 on the cheap at its newest Gigafactory in Mexico, but permits and labor cost disputes, as well as issues with employee relocation made it change its mind and peg Austin, Texas as the spot for initial Model 2 batch assembly. In Europe, where compact cars are all the rage, Tesla's cheapest car will get assembled locally as well, at its Giga Berlin location where it now makes the Model Y.

As for the Tesla Model 2 starting price, it has been said to start at about $22,000 before any subsidies. Given that it will most likely use China-made iron phosphate batteries by the likes of CATL or BYD, it may not get the full $7,500 tax credit that the US government is generously doling out. Still, a sub-$25,000 price point will do wonders for mass electric vehicle adoption, and Tesla is counting on economies of scale to boost revenue and profitability with the arrival of the Model 2.

Tesla Model 2 specs

• 54 kWh CATL M3P battery with ~300-mile ETA range
• Hardware 5.0 FSD computer with 3nm processor
• 48V low-voltage architecture
• Tesla NV9X EV platform

Last but not least, Tesla has reportedly developed a brand new platform for the Model 2, dubbed NV9X, which it may also use for other future vehicles like the much touted robotaxi, for instance. Interestingly enough, Tesla allegedly took a $23,950 Honda Civic at one point, and tore it down to learn how to make cheaper cars without sacrificing quality and performance.

Some of the modern electric car features that it debuted with the Cybertruck, such as the 48V low-voltage architecture, are said to make it into the Model 2 as well, so in 2025 Tesla may start upgrading its new V4 Superchargers for the 350 kW output they are officially rated for. The Model 2 should also come with Tesla's next-gen HW5 FSD autonomous driving computer with a modern 3nm processor inside.

The initial Model 2 production rate Tesla is gunning for at Giga Texas is said to be 10,000 cars per week, or about half a million cars annually. That's a far cry from the 4 million cheap electric cars per year it was aiming to assemble, but production will probably ramp up quickly and in 2026 it may have already achieved the 2/2 million Model 2 units split between Giga Texas and is other factories. Coincidentally, the 2025-2026 period is when most other EV makers which announced cheap sub-$25,000 EVs for the masses aim to release them as well.

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