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VW outs €25,000 Polo EV challenging Tesla with Model 2 battery size

The new VW ID. Polo EV hatchback.
ⓘ VW
The new VW ID. Polo EV hatchback.
Volkswagen just did something Tesla has been promising since 2020 and actually launched a $25,000 EV. The new ID. Polo even boasts the rumored Tesla Model 2 affordable EV battery size.

Tesla's on-again, off-again approach to launching a cheap mass-market electric car dubbed the Model 2 is being challenged in Europe by none other than Volkswagen, the premium EV brand there.

The new VW ID. Polo debuts with a starting price of €24,995, and, unlike Tesla's perpetually delayed Project Redwood "next-gen vehicle" that may never materialize, it can be preordered right now.

VW ID. Polo price and battery specs

The entry-level sub-€25,000 ID. Polo packs a 37 kWh LFP battery with a modest 114 hp motor, which positions it squarely as a city dweller with the occasional weekend outing that doesn't stray too far off the neighborhood, as charging time takes about half an hour.

Where the ID. Polo gets interesting, though, is the 52 kWh NMC battery version that coincidentally comes with the same battery size that the Tesla Model 2 has been rumored to come with. Its front axle electric motor outputs 211 hp, with a WLTP range of up to 454 km, which in EPA terms would likely translate to 270 miles on a charge. DC fast charging comes standard across the entire lineup, with the base battery hitting 10–80% in around 27 minutes.

Meanwhile, Tesla's rumored Model 2 will seemingly remain vaporware. Tesla reportedly gave up on making a dedicated affordable vehicle and focused on lowering the production cost of its Model 3 and Model Y bestsellers instead. At the Q1 earnings call, Elon Musk expressed hope that the autonomous Cybercab two-seater that is entering mass production will entice potential Model 2 customers, too, pending regulatory approval for the pedal-less, driverless car.

Tesla's Unboxed Process was supposed to cut manufacturing costs by roughly 50% compared to the Model 3 platform, suggesting that the $25,000 target is achievable, especially in the form of a Cybercab that could cost as low as $15,000 to produce en masse. The way that VW lowered the ID. Polo costs, on the other hand, is by using cell-to-pack battery technology, increasing energy density by around 10% and saving space at the same time.

Inside, VW finally brought back physical buttons according to its new ergonomics concept for the return of real toggles for climate, hazard lights, and window switches. Instead of a small rebellion against the touchscreen-everything era that Tesla pioneered and VW used to copy, now the trend has been fully reversed as regulators and users are increasingly demanding physical buttons and switches.

If Tesla ever releases a small Model 2 hatch styled as a miniature Model Y, it may still keep the touchscreen-only approach with something to press on only where regulators demand it, as it usually goes for a stripped-down interior to hit its price points. In short, both cars would target the same buyer, but only one of them exists yet and is already on sale. The €33,795 price point for the VW ID. Polo with the larger 52 kWh battery, however, might be a far cry from what customers would deem an affordable EV without subsidies.

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VW ID Polo interior is full of physical buttons and knobs.
ⓘ VW
VW ID Polo interior is full of physical buttons and knobs.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2026 05 > VW outs €25,000 Polo EV challenging Tesla with Model 2 battery size
Daniel Zlatev, 2026-05- 1 (Update: 2026-05- 1)