Henry Willy
The $25,000 Game Changer
Tesla has unveiled the redesigned Model 3 and previewed its long-awaited $25,000 entry-level electric vehicle, sending shares surging 12% in after-hours trading. CEO Elon Musk announced that the new compact EV, codenamed "Model 2," will begin deliveries in Q2 2026 and target production of 5 million units annually by 2030. The vehicle features a revolutionary new battery chemistry that reduces costs by 40% while maintaining 250 miles of range. The redesigned Model 3 includes a complete interior refresh, faster charging, and improved autonomy hardware — all while maintaining its current price point. Musk revealed that Tesla has already secured 2.5 million pre-orders for the Model 2, with $100 deposits totaling $250 million in committed revenue. The company's new "unboxed" manufacturing process allows Model 2 to be built 40% faster than current models, addressing Tesla's long-standing production bottleneck concerns. Analysts immediately upgraded price targets, with Wedbush Securities now calling for $500 per share by 2027.
Production Revolution
The new manufacturing process represents a fundamental shift in how cars are built. Instead of assembling vehicles on a traditional assembly line, Tesla's "unboxed" method assembles major components separately and then combines them in one step — reducing factory footprint by 50% and construction costs by 60%. This innovation, combined with Tesla's new 4680 battery cells produced at scale, enables the $25,000 price point while maintaining healthy margins. The company plans to build 10 new "unboxed" factories globally by 2030, with Mexico, India, and Indonesia already confirmed. Each factory will produce 500,000 Model 2 vehicles annually at full capacity. Tesla also revealed that Model 2 will be the first vehicle to use Tesla's next-generation FSD hardware, bringing fully autonomous driving to the mass market. The announcement comes as Chinese competitors flood the market with $20,000 EVs, making Tesla's aggressive pricing and timeline critical for maintaining market leadership.
