Codenamed "Redwood" and widely speculated to be called the Model 2, this is Tesla's rumored compact car that will likely start at around $25,000, making it the most affordable Tesla ever. Reports suggest it is being designed in China, where Tesla is currently very popular, as some sort of four-door lifted hatchback. Alternatively, prototypes have allegedly been spotted showing a shortened, lower version of the Model Y crossover with a stubbier wheelbase. The Model 2 will use a completely new platform that combines the best aspects of Tesla's previous underpinnings, and autonomous driving capabilities are said to be one of the Model 2's main features. More recent rumors claim that production will begin in June 2025 at Tesla's Austin, Texas production facility, and later it could move to two other new factories planned in Mexico and somewhere outside of North America. What's more, Tesla has apparently been studying the Honda Civic, which starts near the Model 2's target price, to properly educate itself on building a more affordable car.