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Tesla’s $25k Model 2 car expected to be unveiled in 2024

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TSLA analysts at Loup Ventures think the Tesla Model 2 will be unveiled in 2024. 

“Tesla will wait until 2024 to announce Model 2,” stated Loup Ventures in its 2022 Predictions letter.

“If the company announces the lower-price[d] car too early, they risk slowing sales of Model 3 while ramping capacity during what is likely to be a broader auto recession,” Loup Ventures explained. 

The venture capital firm expects Tesla to provide a Model 2 preview in early 2024 and start ramping production on the new electric car design in mid-2025.

Tesla Model 2 Details

So far, only a few details have been released about the Model 2. Although Tesla has not really confirmed any of those details. 

Elon Musk has set some goals for the new electric vehicle model that Tesla might focus on during the development of the Model 2. 

First, the Model 2’s price target is $25,000, which would make it Tesla’s most affordable unit yet when it does start selling. Second, the Model 2 will be either a compact car or a subcompact vehicle–a popular design in Europe and Asia. 

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Tesla China is reportedly working on Model 2 development. Chinese media have published reports stating that Model 2 development has already started. Speculations in 2022 pointed to a tentative Model 2 release date in 2023. 

The name of Tesla’s $25,000 compact/subcompact vehicle has yet to be officially announced. The terms Model 2 and Model Q have been used to refer to the upcoming electric vehicle, but Tesla has not confirmed the moniker. During his virtual appearance in the 2022 B20 Summit in Indonesia, Elon Musk was asked if Tesla would name the upcoming entry-level EV the Model I. Musk neither confirmed nor denied the name. Instead, he stated that a more economical car made sense. 

Tesla already has a busy schedule coming into 2023. It is working on the Model 3 revamp, a possible Model Y update, and the Cybertruck’s initial production ramp at Giga Texas. The Tesla Cybertruck might be Tesla’s priority in the first half of 2023.

Do you know anything about Tesla’s next gigafactory location? Contact me at maria@teslarati.com or via Twitter @Writer_01001101.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla Summer Update begins rolling out: a look at the new features

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Credit: Tesla

Tesla has started to deploy the 2026 Summer Update to owners across its fleet, and among the biggest changes are improvements to Navigation, a new startup animation for the Model 3 and Model Y, Caraoke scoring, and new capabilities for Grok.

As the update has started making its way to some cars, we can now see a few of the features operating in real-time. We will show you what some of the new features look like in this article, along with some additional details on what changed.

Not all of the new features in the 2026 Summer Update have quite made an appearance, but some of them have, so we’ll show those here:

New Animation Screen for 3/Y

Tesla is rolling out a new startup animation for Tesla Model 3 and Model Y owners. This is present in Launch Edition and Performance Model 3 and Model Y, but other trim levels do not have anything like this.

Owners can adjust the color associated with the startup animation to suit their preferences. It is a surprise that more automakers do not focus on this animation for their vehicles; it can be a great first impression piece and make the car immediately feel more luxurious.

Tesla has included this on more premium trims, but it is nice to see it on the Model 3 and Model Y.

Grok Improvements

Grok can now adjust more things in the car outside of the Navigation system. Now, drivers can adjust anything from climate to driving settings by simply speaking to the AI assistant in the car:

You don’t even have to push a button, either. Instead, you can just say “Hey, Grok,” if you have it enabled. That feature rolled out with the 2026 Spring Update just a few months back.

This is a great feature, especially pertinent for the Robotaxi platform, as there will be no buttons inside the Cybercab when it eventually starts giving rides to the public. It also broadens Grok’s capabilities, which were relatively limited in terms of vehicle setting adjustments beforehand.

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Tesla briefly offered this Robotaxi part for your personal car

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Tesla briefly offered one Robotaxi part in its Parts Catalog for your personal car, only to remove it just a short time after it was first noticed.

Tesla’s Robotaxi camera washer apparatus was briefly available for purchase on the company’s Online Parts Catalog. The camera washer was first noticed on Model Y Robotaxi vehicles about six months ago in Austin.

First noticed by Not a Tesla App, the Camera Washer entries appeared for the new “Juniper” Model Y under a category called “Halo,” which has also now disappeared. Interestingly, Halo probably is related to Tesla’s internal “Project Halo,” which was a project that aimed to retrofit customer-owned Model Ys into functional Robotaxis.

This hardware addition would likely be required for the vehicle to operate as a Robotaxi, as the Camera Washer seems to be a non-negotiable part of the vision-based system Tesla utilizes for self-driving efforts.

However, this part has since been removed and is no longer visible on the EPC.

Now the true question lingers: Why would Tesla add this Camera Washer to the Model Y parts catalog? Is it planning to make it available for owners to utilize on their own cars for personal use, or will it become a prerequisite for Robotaxi operation in customer-owned cars?

While discussing the upgrade options for Hardware 3 vehicles during the Q1 Earnings Call, Tesla CEO Elon Musk had said that the company could establish small, satellite shops that would upgrade cameras and self-driving computers. Perhaps this same strategy could be utilized for vehicles that want to be included in Robotaxi but do not have the correct hardware.

AI4 is currently represented as capable of unsupervised self-driving, and the same was said about HW3 at one point, only for Tesla to admit last quarter that it would, unfortunately, not be possible. Perhaps AI4 vehicles might need this camera washer as a prerequisite, just as HW3 cars will need that camera and computer upgrade.

This could be the first hint of that’s where we are headed.

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Tesla Robotaxi gets sweeping but polarizing change

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Credit: Tesla

Tesla has started rolling out a broader change to the ride experience for its Robotaxi fleet by silencing turn signals, but the change is certainly polarizing.

Tesla has generally made it clear that its purpose-built ride-hailing platform, Robotaxi, will cater to the rider in nearly every way possible. This includes having climate preferences, music, and other personal settings loaded up in the car as the rider enters.

But Tesla is taking it a step further by muting turn signal chimes altogether, a change that appears to be a way to make the ride more peaceful:

However, there are a handful of people who are not thrilled about this change. Turn signals are a conditioned part of the human mind for those who ride in a car regularly.

Taking a turn without one feels strange and odd, and not hearing it click while activated could set off some alarms for riders, who might use the noise as confirmation that other drivers know of their intention to turn.

Turn signal noises are still audible in customer cars, so if you use FSD in your personal vehicle, you will still hear the turn signal.

The move is certainly one that is unique, but not one that separates it from other ride-sharing services. In a normal car, the clicking sound confirms to the driver that the blinker is active. In a fully driverless Robotaxi, that feedback serves no purpose for passengers, other than peace of mind.

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