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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Well-known Tesla hacker Greentheonly has discovered a new FSD computer labeled Model Y “Reloaded.” This AI4 FSD computer differs from other Model Y Autopilot hardware which is usually just labeled “Model Y.”
Initially, it looks like this new computer may be for the just-announced refreshed Model Y Juniper, which is now open for orders in North America and Europe as well as Asia Pacific, but several features reveal it’s not for Tesla’s upcoming best-seller.
So, with that said, put on your detective hats, we’re going for a little sleuth into what exactly this “Reloaded” computer could be used for.
Model Y Reloaded Computer
The AI4 computer is the brain behind Tesla’s FSD. It is the Autopilot computer, where all the vehicle’s cameras connect, enabling real-time data processing and analysis.
This particular unit is not the standard FSD unit that’s being shipped with the current, now “first-gen” Model Y. The biggest sign that it differs from the current AI4 computer is that it features a connector for the front bumper camera. While the 2024 Model 3 was expected to come with a front bumper camera, it was only ever available on the Cybertruck and will soon be available on the new 2025 Model Y.
This is similar to the physical connector for the front bumper camera present in newer iterations of the Model S and Model X computers. These vehicles were originally slated to get a bumper camera last year, but that hasn’t happened yet. We reported back in 2022 that they received the additional camera hook-ups but no camera.
Tesla recently issued a recall for the AI4 computer, citing physical and software issues that could cause a potential short on the board. According to Green, this board is not the recalled unit but could instead be a replacement unit. However, why the board includes a front bumper camera connection remains a mystery.
Not a Juniper FSD Computer
We know that this isn’t the correct part for the refreshed Model Y Juniper because it lacks a connector for the secondary rear screen in the upcoming model.
Additionally, Tesla has labeled this computer unit as “MY Reloaded” - previous versions of the computer for the Model Y were listed as just “MY.” In addition, all the other computer versions have been pulled from Tesla’s Electronic Parts Catalogue - only this one is now available as Part #2003160-S0-E.
The label with
@greentheonly on X
Speculation
This new FSD hardware doesn’t appear to match the current or new Model Y, so what could it be? Well, there are a few things here. Tesla wouldn’t bother populating that front bumper camera slot for no reason - and this computer is a slightly different form factor than the one that goes in the Model S and Model X - so they’re not just sharing parts between the Model S and Model Y.
The most likely scenario is that Tesla is planning to replace any faulty AI4 computers with this updated part. But could Tesla be open to offering a retrofit for the front bumper camera? It’s important to note that this is not the hardware upgrade that many HW3 owners are waiting for. It is a different form factor than the HW3 computer and wouldn’t fit in HW3 vehicles. If anything, this is a potential replacement for the AI4 computer to support forward compatibility if FSD ever requires a bumper camera.
The full computer.
@greentheonly on X
Bumper Camera Retrofit?
Is Tesla planning to offer a front bumper camera retrofit? Maybe. Tesla doesn’t typically offer retrofits. They did for several items in the past, but they have largely stopped doing so.
Tesla included a front bumper camera on the refreshed Model Y Juniper, as well as on the Cybertruck - and it could be extremely useful for both Actually Smart Summon and FSD to remove the frontal blind spot.
However, it could be an optional feature rather than a retrofit feature. Until FSD Unsupervised arrives, we won’t know for sure whether a bumper camera is required.
For now, it would be best to keep an eye on this. Just like the Model S and Model X having the slot populated, it may not necessarily happen, but it leaves the door open for a future upgrade if necessary.
Tesla has announced steep price increases for its vehicles in Canada, with adjustments of up to CA$9,000 set to take effect on February 1, 2025. This move impacts nearly all models, with the Model 3 Performance trim seeing the steepest hike, rising from $70,990 to $79,990 Canadian. The Model Y, Model S, and Model X will each see a flat increase of CA$4,000 across all trims. Notably, the Cybertruck remains unaffected by these changes.
These price hikes coincide with the expiration of Canada’s federal EV incentive program, which previously offered CA$5,000 rebates on eligible vehicles, further increasing the price of Tesla vehicles.
Additionally, the Canadian dollar’s recent decline against the US dollar and looming trade tensions between the U.S. and Canada may have influenced Tesla’s decision. President Trump proposed a 25% tariff on Canadian goods, and Tesla may be expecting Canada to retaliate with a similar tariff on US goods. However, it’s interesting that Tesla has chosen to raise prices so drastically before any tariffs have been announced.
Price Increases
Model
Price Increase
Model 3 Long Range RWD
CA $4,000 ($2,800 USD)
Model 3 Long Range AWD
CA $8,000 ($5,600 USD)
Model 3 Performance
CA $9,000 ($6,300 USD)
Model Y
CA $4,000 ($2,800 USD)
Model S
CA $4,000 ($2,800 USD)
Model X
CA $4,000 ($2,800 USD)
Cybertruck
$0
Buyers
This could be a critical time to act for prospective buyers, with the price increase going into effect in just about a week. Tesla’s online configurator allows customers to lock in current prices by placing an order before February 1st. The company’s referral program also offers CA$1,300 off Model Y, Model S, and Model X purchases, providing additional savings before the price hike takes effect.
It’s not clear how much these adjustments will impact Tesla sales in Canada. If the increases are related to an upcoming tariff, then they’ll impact other manufacturers as well. We may see a potential surge in orders ahead of the February 1 deadline, especially for the AWD and Performance variants of the new Model 3, which will see the largest increase.
The price increase is expected to impact the new Model Y as well, which was announced last night for North America and Europe. Deliveries for the new model begin in March.
If you’re on the fence about whether you should order a new Tesla, now may be a good time to place your order. Tesla offers the ability to cancel your order, but buyers would lose their deposit.
