Tesla China Denies Recent Claims of Building $25,000 ‘Model 2’

Recent reports that Tesla China was developing the $25,000 (USD) ‘Model 2,’ to be sold worldwide, have now been shown to be incorrect.

On Monday, cnEVpost (via Yahoo Finance) reported that Tesla has again denied claims of developing the $25,000 (USD) electric vehicle (EV), with a source at Tesla saying “we never said those words.”

The $25,000 vehicle was first announced at Tesla’s Battery Day event last year, where CEO Elon Musk claimed the company would release the budget model within three years.

To be sure, the rumor was a fairly easy sell. With Tesla China’s research and development (R&D) center expected to be completed this year, it doesn’t seem out of the question that the company would already be working on its Model 2.


In addition, reports also stated that Tesla was undergoing an Environmental Impact Assessment for the budget Tesla model, which was expected to be revealed at Guangzhou’s Auto Show late this year.

Whether or not the Model 2 is currently in production, Tesla’s first budget EV will make major strides in helping bring about mainstream adoption for consumers, making it an important release.

Many who cannot afford currently-available Tesla vehicles – especially those living outside China who do not have access to the super-affordable Wuling Hongguang Mini EV – will simply have to wait until the company’s announcement of a Model 2 budget EV, though it will likely happen within the next few years.