The Tesla Model 2 aims to make electric vehicle ownership more affordable. Tesla probably won't use the name "Model 2" because it implies a smaller version of the Model 3 when it will really be a more economic version. Tesla's target is a $25k car, but the Model 3 was also supposed to be $35k but ended up being more expensive. The Model 3 currently sits at just under $47k in the US.
When Tesla created the Model 3, they essentially built a scaled-down, more efficient version of the Model S by removing features that were more expensive or hard to manufacture. Many of the switches, vents, and features were either simplified or completely removed, including the instrument cluster.
This includes replacing physical controls with on screen controls, like the handle for the glove box, mirror adjustment buttons, windshield wiper controls and many others.
Other controls were simplified to reduce complexity and therefore cost. Some examples include the simplified vent system and steering wheel buttons. The interior and exterior door handles were also redesigned to reduce the amount of moving parts.
Back in 2016 when the Model 3 was unveiled it wasn’t entirely clear which features were cost-cutting measures and which were feature iterations and would become standard in all future Teslas.
When Tesla debuted the new Model S in 2021 it became clearer which features may have been cost-cutting measures. We saw a lot of Model 3 features carry over to the redesigned Model S, such as a horizontal center screen, one continuous vent with on screen controls, but not every feature made it over.
These were seen as the compromises Tesla made to create a vehicle that is cheaper to manufacture when compared to the Model S.
The Model 3 doesn't have an air suspension, cooled seats, a rear screen, or an instrument cluster. It also has a slightly smaller center screen. So what more can Tesla remove or simplify from a Model 3 to create a more affordable, scaled-down vehicle?
Tesla would likely keep all software-only features since they don’t add much to the cost of the vehicle. Some possibilities may include fewer speakers, removing heated seats in the rear, removal of wireless chargers, and removal of the glass roof. Removing any cameras or the FSD computer is unlikely since the FSD package is profitable for Tesla and there are also safety features that depend on that hardware.
It’s possible that Tesla's Model 2 has transformed into the supposed Robotaxi mentioned at the Giga Rodeo Event. Elon has previously talked about creating a car without steering wheels or pedals, which would be fitting for a fully autonomous vehicle.
At Battery Day, Tesla said that standard range vehicles and future models will use lithium iron phosphate batteries. LFP batteries are cheaper to produce and have some advantages and disadvantages when compared to nickel batteries. Tesla would likely use the 4680 LFP battery for the Model 2. This would make the vehicle smaller and lighter, but may also offer less range.
Tesla's 4680 battery
Tesla’s 4680 cell is named after its dimension, 46mm x 80mm. They are much cheaper to manufacture, producing 5x more energy, 16% more range, and 6x more power, making them far more economic than traditional batteries. Using 4680 batteries, the Model 2 is expected to have a travel range of 250 to 300 miles.
Tesla will use a structural 4680 cell pack in a single body cast to manufacture the Model 2 as efficiently as possible. This along with advanced robotics will help Tesla achieve economies of scale and mass-manufacture their most affordable car yet.
In May 2022, during the Financial Times 'Future of the Car' interview (video), Elon stated that there is some probability that Tesla would make a car smaller than the Model 3, leaving the possibility open for both, a smaller Model 3 and a Tesla Robotaxi.
Don't expect the “Model 2” anytime soon, Elon has talked about Tesla finishing the CyberTruck this year and starting production in 2023. Tesla also has the Roadster and Semi to produce, which are very likely to be ahead of the Model 2.
By that time, we may see drastic improvements in FSD that could warrant a fully autonomous Robotaxi. I wouldn't expect the Model 2 before 2024 at very best, but we could see prototypes before then.
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Tesla has issued a strong denial in response to a Wall Street Journal report (Paywall) which claimed that Tesla’s Board of Directors had initiated a search for a new CEO.
In a statement posted directly on Tesla’s X account, Board Chair Robyn Denholm denied the report unequivocally. As per the statement, Tesla’s board did not reach out to recruiting firms in search of a new CEO.
Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.
This is absolutely false (and this was communicated to the media before the report was published).
The statement reaffirmed the board’s position on Tesla’s current leadership and that the board is highly confident in Elon’s ability to continue executing Tesla’s plans and future growth.
This confidence behind Elon follows his recent statements made during the Q1 2025 Earnings Call that he would be stepping back from the Department of Government Efficiency (DOGE) in the coming days and significantly reducing time spent there. Instead, he would be returning to focus on Tesla’s operations and the upcoming deployment of Robotaxi.
Shortly after the denial was posted, Elon Musk also commented on the report, specifically tagging the Wall Street Journal and criticizing their handling of the report.
It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors! https://t.co/9xdypLGg3c
We’re glad to see Tesla and Elon set the matter straight, but there could have been a better way to spread this message and maybe even prevent the report from WSJ from going out.
We recently published an opinion piece on why Tesla needs its PR team back, and this specific incident is a good example. Relying solely on platforms like X for critical corporate communications - and in this case, late at night (1 AM EST), with limited reach outside the existing follower base seems like an ineffective way of communicating important company information.
We’d love to see Tesla really put some thought into managing its image, as it seems that several recent reports from major financial news organizations have apparently been wrong.
Either way, the board’s stance is clear - there is no active search underway, and Elon has the full backing and support of the board to lead Tesla toward the future.
Tesla’s Megapack is rapidly becoming a key component in energy storage and grid modernization efforts worldwide. Though often associated with powering AI infrastructure or industrial operations, Megapack’s true strength lies in its ability to stabilize electrical grids during blackouts and brownouts.
In a recent behind-the-scenes reveal, Tesla showcased the impressive scale of Megapack production at its Mega Lathrop facility, along with real-world examples of how these systems are already transforming energy resilience across the globe.
Mega-Scale Megapack
Tesla is operating the largest utility-scale battery manufacturing facility in North America at Mega Lathrop, which has the capacity to produce 10,000 Megapacks annually. Thanks to a highly automated assembly process that uses over 30 welding robots to assemble the core Megapack structure. This is the largest manufacturing fixture Tesla uses— likely to only be matched by future developments at Mega Shanghai.
Tesla uses a highly automated powder coating process, utilizing over 90 robotic paint atomizers to apply more than 140 pounds of powder coat to each Megapack. This process delivers Tesla’s signature white reflective finish, engineered for long-term durability and corrosion resistance that lasts up to 20 years, even in harsh coastal or high-heat environments.
All of Megapack’s power electronics are designed and built in-house. Each Megapack uses 24 battery modules, electrical busing, and thermal management systems to ensure grid reliability and help to maximize energy density. The architecture pairs each inverter with a battery module to maximize energy availability and overall uptime. Plus, before each Megapack ships its way across the world, Tesla performs rigorous on-site quality control to ensure that the installation process is as seamless as possible.
Watch Tesla’s video of the manufacturing process below:
Megapack’s Real-World Impact: Hawaii
The core purpose of Megapack is to make power grids more stable and resilient while also reducing reliance on dirty peak power plants like coal. They achieve this by balancing energy supply and demand in real-time, smoothing out fluctuations from variable renewable sources like solar and wind, which helps to prevent grid shortages.
Hawaii actually provides the most real and down-to-earth example of Megapack’s impact. In mid-2024, the Kapolei Energy Storage facility in Hawaii came online. Hawaii utilized 258 Megapacks with a combined capacity of 565 MWh, successfully replacing the state’s last coal-fired power plant. This single facility can power approximately 20% of Oahu’s peak electricity needs by itself for approximately 4 hours.
The project is more than just removing coal plants, though. It serves as an example of Megapack’s grid integration and grid forming technology. The Kapolei Energy Storage facility can manage grid fluctuations caused by weather changes impacting renewable energy, improving stability and preventing blackouts. Thanks to their rapid inverter response times of under a millisecond, Megapacks participate in complex grid balancing activities, including fast frequency and voltage support, which helps to maintain grid balance throughout the day. Beyond that, Kapolei also allows Hawaii to black-start the grid in case of a major power outage that takes out a large section of the grid.
This functionality would be especially useful in Spain, where black-starting the grid took over eight hours recently and is still disrupting the day-to-day life of people there.
You can check out Megapack’s real-world impact in this video from Tesla below:
![Tesla’s B-Pillar Recording Requires HW4 [Update: New Dashcam Viewer Included on HW3 / Ryzen Vehicles]](https://www.notateslaapp.com/img/containers/article_images/tesla-screen/dashcam-viewer-hw3.jpg/ba8281c93679d2cf4a405a771e96b167/dashcam-viewer-hw3.jpg)
![Tesla Semi Keynote: New Features, 46 Charging Sites, Upgraded Battery & More [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/semi/semi-new-features.jpg/c7df4e0d32f8cb0beee080ad201e943b/semi-new-features.jpg)
![Tesla's Hidden 'Elon Mode' Unveiled: A Sneak Peek into the Future of FSD [Video]](https://www.notateslaapp.com/images/news/2022/fsd-beta-inside_300w.jpg)
