Is the Tesla Model 2 coming? Not officially. As of October 22, 2026, Tesla has not announced a car below the Model 3, there is no price, no release date and no way to pre-order one. What does exist is an April 2026 Reuters report, backed by four sources, that Tesla is developing a smaller, cheaper compact SUV. Tesla China called the report inaccurate, and Tesla’s Q3 earnings call on October 21 didn’t mention the car at all. If you need an affordable Tesla now, the $36,990 Model 3 is still the cheapest one you can buy.
We already covered the wider Tesla roadmap in our guide to upcoming Tesla cars in 2026 and 2027. This piece goes deeper on one question US buyers keep searching for: what is real about a cheaper Tesla Model 2, and is it worth waiting for?
Where the “Model 2” story stands in October 2026
“Model 2” has never been an official Tesla name. Fans have used it for years for any Tesla priced below the Model 3. The idea got a big boost in 2023 and 2024, when a $25,000 car was widely expected. Then, as Electrek recounts, Elon Musk shelved that project in 2024 and called a cheap, human-driven Tesla “pointless” next to robotaxis.
That is why the April 9, 2026 report mattered. According to Reuters, Tesla has gone back to work on a smaller and cheaper electric vehicle. The story was quickly picked up by CNBC and Electrek. A day later, Tesla China told Chinese media the reports were “inaccurate,” Electrek reported.
Six months on, nothing has moved publicly. On Tesla’s Q3 2026 call, Musk said demand is running ahead of production and that the company is aiming for roughly 5 million vehicles a year by around 2030, according to the Motley Fool transcript. He did not announce a new entry-level car.
What’s confirmed
The confirmed list is short, and none of it is about a new car.
- The cheapest Tesla in the US is the Model 3 at $36,990 on Tesla’s site, or $38,630 once Tesla’s destination and order fees are added. It has an EPA-estimated 321 miles of range and a 5.8-second 0-60 mph time.
- The base Model Y, which was sold as the “Model Y Standard” at launch, starts at $39,990 for rear-wheel drive. That price was left untouched when Tesla raised other Model Y prices in May, CNBC reported.
- Tesla has not announced any vehicle priced below the Model 3. Reservations aren’t open, and Tesla’s US site has no “Model 2” page.
- Tesla China publicly denied the April reports, calling them inaccurate (Electrek).
What’s rumored or reported
Everything about the car itself comes from anonymous sources. Here is what Reuters reported in April, as summarized by CNBC and Electrek:
- Body and size: a compact SUV about 4.28 meters long, or roughly 14 feet. CNBC put the current Model Y at about 15.7 feet.
- Weight: around 1.5 metric tons, compared with roughly 2 tons for a Model Y.
- Hardware: a smaller battery and a single motor. Sources described it as a new vehicle, not a stripped-down version of an existing Tesla.
- Price: “substantially lower” than the Model 3, according to Reuters. No figure was given. The $25,000 number people still attach to “Model 2” comes from the earlier, cancelled project, not from this report.
- Where it would be built: three sources said Shanghai. One source said production could expand to the US and Europe later.
- Self-driving angle: Reuters’ sources said the car is designed to work as a driverless vehicle but would also offer a human-driven option.
- Timing: early development, with no confirmed green light. Reuters said production is unlikely in 2026, and Electrek wrote it is unlikely before 2027 at the earliest.
One more thing is worth knowing before you dismiss the denial or trust it. In 2024, Musk responded to Reuters’ report that the $25,000 car had been cancelled with “Reuters is lying (again).” Electrek points out that the report turned out to be accurate. Tesla’s denials and Reuters’ sourcing have both been wrong before, so we’d treat this one as an open question.
Reported Tesla Model 2 specs vs. the Teslas you can buy today
Here is the rumored compact next to the two cheapest Teslas on sale. The middle column is reported, not official.
| Reported compact Tesla (“Model 2”) | Model 3 RWD | Model Y RWD (base) | |
|---|---|---|---|
| US starting price | Not announced (“substantially lower” than Model 3, per Reuters) | $36,990 ($38,630 with destination and order fees) | $39,990 before fees |
| Body style | Compact SUV | Sedan | Midsize crossover |
| Length | About 14 ft (4.28 m), reported | N/A | About 15.7 ft |
| Weight | About 1.5 metric tons, reported | N/A | About 2 metric tons, per Reuters’ comparison |
| Motors | Single motor, reported | Single motor, RWD | Single motor, RWD |
| EPA range | Unknown | 321 mi | 321 mi |
| Status | Early development; not confirmed by Tesla | On sale | On sale |
Sources: Reuters, CNBC and Electrek reporting (April 2026); tesla.com/model3 and tesla.com/modely (checked October 2026). “N/A” means we didn’t find an official figure to cite.
When could a cheaper Tesla reach the US?
Nobody outside Tesla knows, and anyone giving you a firm date is guessing. Here’s how we read it, based on the reporting above:
- 2026 is effectively ruled out. Reuters said production this year was unlikely, and there was no reveal on the Q3 call.
- 2027 is the earliest realistic window, and that’s Electrek’s estimate for production, not for US deliveries.
- The US may not be first. If the car starts in Shanghai, as three sources said, the US would only get it after a later expansion. That one source said this could happen. Building in the US would also mean retooling a factory, and that usually happens after a vehicle is approved, not before.
Our read: a US-built compact Tesla in American showrooms before 2028 would be a surprise. That’s an estimate, not a reported date.
Should you wait for a Tesla Model 2?
For most people shopping today, no. Here’s who should and shouldn’t wait.
Buy now if you need a car in the next 12 months. A Model 3 at $36,990 is the cheapest Tesla you can get, and it has 321 miles of EPA-estimated range. We covered the price drop that got it there in our Model 3 price story. If you want a crossover, the base Model Y is $39,990, but it gives up some features to hit that price. Car and Driver noted the base Model Y has fabric seats, no rear touchscreen and a covered-over glass roof.
Consider waiting if you specifically want something smaller and lighter than a Model Y, you can keep your current car running into 2028, and you’re comfortable with the real chance that the car never comes to the US.
Look elsewhere if price is the main thing. The new Chevy Bolt starts at $27,600 on Chevrolet’s model page, though the same site’s FAQ lists a $28,995 starting MSRP. Chevy doesn’t explain the gap, so check the build-and-price tool before you shop. The 2027 Kia EV3 starts at $29,890 plus a $1,495 delivery fee, according to Electrek. Both start roughly $7,000 to $9,400 below the Model 3, before fees. For more options, see our list of the best affordable electric cars in the USA.
| Affordable EV (US) | Starting price | Fees included? | Source |
|---|---|---|---|
| Chevrolet Bolt LT | $27,600 (model page) / $28,995 (site FAQ) | Not stated | chevrolet.com |
| Kia EV3 Light FWD | $29,890 | No ($1,495 delivery extra) | Electrek |
| Chevrolet Equinox EV LT1 FWD | $34,995 | No | chevrolet.com |
| Tesla Model 3 RWD | $36,990 | No ($38,630 with fees) | tesla.com |
| Tesla Model Y RWD | $39,990 | No | tesla.com |
What would change our view
There are a few signals to watch. Any of them would make the rumor much more credible:
- An official teaser or reservation page on tesla.com. Tesla has historically opened reservations early, as it did with the Cybertruck and the Roadster.
- A mention in a Tesla shareholder deck or an earnings call. The Q3 call didn’t have one.
- Regulatory filings. New US vehicles show up in EPA and NHTSA paperwork before they go on sale. The Cybercab’s specs first came out through an EPA certificate, for example.
- Reports of tooling or hiring for a new vehicle line at a US plant.
FAQ
What is the Tesla Model 2 price?
There isn’t one. Tesla hasn’t announced a Model 2 or any car below the Model 3. Reuters reported in April 2026 that a smaller compact SUV in development would cost “substantially lower” than the Model 3, which starts at $36,990, but it didn’t give a figure.
What is the Tesla Model 2 release date?
No date has been announced. Reuters said production in 2026 was unlikely. Electrek said 2027 would be the earliest possible start, and the reported plan is to build it in Shanghai first.
Is the Tesla Model 2 coming in 2026?
Almost certainly not. No reveal or reservations have happened as of late October 2026, and Tesla’s Q3 earnings call didn’t mention a new entry-level model.
Can you pre-order a Tesla Model 2?
No. There is no reservation page and no official vehicle to reserve. Be wary of any site that claims to take Model 2 deposits.
What is the cheapest Tesla right now?
The Model 3 rear-wheel drive at $36,990, or $38,630 with Tesla’s destination and order fees. The cheapest Model Y is $39,990.
Did Tesla cancel the $25,000 car?
The original $25,000 project was shelved in 2024, according to Reuters and Electrek, and Musk called such a car “pointless” at the time. The April 2026 report describes a different, newer project.
