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 unveiled its 6-seat Model Y variant in China, known as the Model Y L. This new variant of one of the world’s best-selling vehicles comes with a longer wheelbase, adjusted C-pillar design, and most importantly, a six-seat interior layout.
The vehicle’s specifications have been officially listed in a filing with China’s Ministry of Industry and Information Technology (MIIT), confirming a launch for this fall.
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The addition of a longer wheelbase and a more spacious third row is a fantastic addition for the Model Y’s family utility, and positions this variant as sort of a mini Model X, but let’s compare the sizes to really know how this new Model Y compares to a Model X.
Meet the Model Y L
The defining feature of the new Model Y L is its six-seat configuration. This layout has previously been exclusive to the larger and more expensive Model X. While Tesla has offered the Model Y in a 7-seat configuration before, the third row was much too small to be utilized by anyone but small children.
Comparing Model Y L to the Model X
@xiaoteshushu on X
Let’s compare this upcoming Model Y L to the regular Model Y and the Model X.
Vehicle/Dimension
Wheelbase
Overall Length
Model Y
2,890mm / 113.8 in
4,797mm / 188.9 in
Model Y L
3,040mm / 119.7 in
4,976mm / 195.9 in
Model X
2,965mm / 116.7 in
5,060mm / 199.2 in
The new wheelbase of 3,040mm is a significant stretch from the standard wheelbase, and in fact, is longer than the Model X’s wheelbase of 2,965mm. However, the overall length of the vehicle is 84mm (~3 inches) shorter than the Model X. This means the vehicle sits neatly between the current Model Y and Model X, filling a much-needed gap.
While this Model Y L is slightly smaller than the Model X, it doesn’t necessarily mean that it’s smaller inside. The Model X features a much larger front end than the Model Y, accounting for several inches. When you line up the front wheel base of the Model X with this new Model Y, the vehicles are almost exactly the same length.
Tesla has designed this Model Y to be a bit more compact and efficient than the Model X, and likely much cheaper, while featuring the well-loved design of the new Model Y.
Other Specifications and Price
The MIIT filing also provided a detailed look at some additional specifications. The Model Y L is a dual-motor, AWD variant, so it will likely be more expensive than the current Model Y AWD that’s available in China today. Tesla charges an additional $6,500 USD when upgrading the Model X from a 5-seat configuration to a 6-seat layout, so we may see something similar here.
The extra length has been added behind the C-pillar, resulting in a longer rear profile for the Model Y L. To accompany this, Tesla has added an updated rear spoiler, similar to the one found on Performance variants, but not carbon fiber. There is also a new wheel design to complement the updated look, along with unique Model Y L badging and a new light gold paint option.
In classic Tesla fashion, no Tesla is slow - and the Y L has a 0-100 km/h (0-60mph) time of 5.9s, with a top speed of 217km/h. Alongside an 82.5 kWh LFP battery pack, the Model Y L boasts an impressive CLTC range of 688 km (427 mi).
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Launch & Availability
According to posts from Tesla China on Chinese social media, the new Model Y L is scheduled to launch in the fall of 2025. Its official listing in the MIIT database is essentially the final regulatory step required before sales can begin, which means the launch is really just around the corner. For now, it appears that Tesla intends to launch this vehicle only in China, as no other filings have been made in other regions. However, these could be revealed in the coming months.
The new Model Y L is a huge addition to Tesla’s lineup - one that addresses the Chinese preference for vehicles with longer wheelbases and additional passenger room in a compact SUV package. The question is - will this variant make its way to North America and Europe?
Solving real-world artificial intelligence - whether for autonomous driving, real-world robotics, or advanced reasoning - requires an almost unfathomable amount of computational power. To meet this challenge, Tesla has been developing its own custom AI training hardware while simultaneously purchasing hardware in the open market.
Now, the next-generation Dojo 2 chip has reportedly entered mass production with the world’s largest semiconductor manufacturer, TSMC. While many may consider this a side quest, expanding Tesla’s computing base will be necessary to achieve exascale supercomputing, which will be crucial for all of Tesla’s AI ambitions.
Elon Musk called Dojo 2 “a good computer,” and then followed up with a classic computer performance joke - Dojo 2 can indeed play Crysis at a billion frames per second.
While Tesla has effectively utilized powerful third-party GPUs to train its models to date, the Dojo supercomputer is a ground-up, application-specific solution designed for a single purpose. It will efficiently process massive amounts of video data for training neural networks. The Dojo 2 chip itself is the key that unlocks this potential.
Dojo 2 will train the vision-based neural nets that FSD relies on, allowing Tesla to process video from its massive global fleet of vehicles even faster. As Tesla continues to improve FSD, one of the biggest challenges has been the intake of video for handling difficult edge cases.
Hundreds of thousands of miles of training data may pass by before an edge case is identified and trained on, but it all needs to be analyzed, labeled, and processed, which is key for Dojo 2. Each new useful piece of training data will help Tesla proceed down the march of 9s, making FSD just that little bit better every time.
This process requires massive amounts of compute and training time - but it is an absolute necessity to improve FSD. Of course, this goes beyond just FSD in vehicles. Tesla’s humanoid robot, Optimus, also runs on FSD to navigate and interact with the physical world.
While it may be a custom version of FSD, it remains FSD at its core, which means the same neural nets that analyze the environment and build a 3D map of the world for your car perform the same work for Optimus.
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Custom Approach to AI Hardware
Dojo 2’s power doesn’t just come from raw compute; it comes from a series of architectural choices that make it excel at training FSD and differentiate it from general-purpose hardware, or even other AI-specific hardware.
To this end, Tesla is using TSMC’s new Integrated Fan-Out with Silicon-on-Wafer (InFO-SoW) packaging technology. For massive AI workloads, heat and the speed at which data moves between chips are often the biggest bottlenecks.
This new packaging technique allows for high-bandwidth connections directly between processing dies, which lowers latency and dramatically improves heat dissipation, all key to building massive and dense compute clusters.
Unlike general-purpose chips, Dojo 2 is designed with a custom instruction set, specifically built to train FSD. The cores are specifically made to accelerate the exact mathematical operations, like matrix multiples and systolic arrays, which form the backbone of Tesla’s vision-based neural networks.
By building its own hardware, Tesla can then integrate its own software and compilers directly with the silicon, optimizing for specific workloads and avoiding the performance penalties that can result from using third-party software, such as Nvidia’s CUDA.
The start of Dojo 2 may seem like a side quest for some, but it’s actually a key step for Tesla’s AI technologies that give them an advantage over the competition using off-the-shelf hardware. They’ll need to continue investing in custom hardware to improve FSD at a reasonable pace, rather than the current glacial pace we’ve seen over the last few months.
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