Tesla’s small, compact electric car will slot below the Model 3 and Model Y.
WHAT IT IS A few years ago, the internet was all stirred up by speculation that Tesla's Chinese operation was preparing an all-new compact electric vehicle to slot under the Tesla Model 3 and Model Y in its lineup. Last year, in Tesla's third so-called "Master Plan," we got our first concrete confirmation that a compact model is indeed in the works. As for a name, Tesla CEO Elon Musk has previously ruled out Model 2, while some rumors have floated Model C or Model Q instead.
In Tesla's presentation of Master Plan 3, we learned the company intends to add a bus, a new commercial van, and a new compact car to its lineup in the next few years. The plan projects more than 40 million lifetime sales of the new compact Tesla once it's in production, which would put it in Toyota Corolla territory as far as ubiquity goes.
It's not yet clear if the Model 2/C/Q—whatever it's called—will be a sedan, hatchback, or SUV, but we can be sure it'll be smaller than a Tesla Model Y. The new compact model would at least start with a 53-kWh battery pack stuffed with Tesla's lithium iron phosphate (LFP) cells. The larger, heavier Tesla Model Y starts with a 75-kWh battery pack, a range of 279 EPA-estimated miles, and a 0-60-mph sprint of 5.0 seconds or so; maximum available range is 330 miles, and the quickest versions have reached 60 mph in 3.5 seconds in our testing.
We anticipate the compact Tesla to start around $25,000 to rival a long slate of forthcoming smaller EVs from legacy automakers, including the Volkswagen ID2, which isn't planned for America. It goes without saying given Tesla's lofty sales targets that this will be a global model.
There's no solid timeline for when the compact Tesla will come to market, and it's difficult to estimate. Tesla announced its second Master Plan seven years ago, and it hasn't yet accomplished everything laid out there, so it's plausible the timeline for its third Master Plan is at least another seven years. Given delays in Roadster and Cybertruck production, expect to wait patiently for any newly announced Tesla vehicles. Still, you want a date? Let's go with late 2025—just don't hold us to it.