Tesla's Rumored $25,000 Model 2 For China Could Be Unveiled In Late 2021: Report

Tesla Inc TSLA appears to be a step closer to bringing a more affordably-priced car to the Chinese market.

What Happened: Chinese outlet Sina recently reported that a required Environmental Impact Assessment is underway for Tesla's Model 2 EV. 

According to Sina, the battery life of the Model 2 is estimated to be between 350-450 kilometers, or around 220-280 miles. The Model 2’s smaller battery and reduced platform will allow for lower prices. The report indicated a $25,000-$35,000 price range for the vehicle. 

See also: How to Invest in Tesla Stock

The report goes on to say the budget Model 2 could be revealed at the Guangzhou Auto Show, usually held in November or December.

Three main takeaways from the Sina report:

  • Tesla's internal EIA process has begun for the Model 2. 
  • It is estimated that the first batch of cars will be tested on the road soon.
  • The Model 2 is expected to be unveiled in the second half of this year.

Why It Matters: China is a hot market for Tesla and a big driver of the company's share price, and a cheaper model has been rumored for a while.

The company started production of the Model Y at Gigafactory Shanghai in December. It currently sells Model 3 vehicles in China and production has been ramped up to 5,000 Model 3 cars per week in the country.

Tesla delivered nearly 500,000 vehicles worldwide in fiscal 2020. Revenue increased 46% year-over-year to $10.74 billion for Tesla in the fourth quarter. That beat the consensus of $10.32 billion and was the highest in company history. Full fiscal 2020 revenue of $31.54 billion was up 28% year-over-year. 

Price Action: Shares of the EV giant rose 4.69% last week, to finish at $852.23.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsTechMediaautomotiveChinaelectric vehiclesEVs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!