We already knew Tesla was planning to follow through with its $25,000 compact car, but there were few details. When is it coming? What will it be called? Will it have the latest and greatest Tesla technology, or be watered down for affordability?

Some folks claim to have sources inside Tesla, and we can only imagine it's true. Many of these Tesla fans and owners, as well as journalists and YouTube influencers, share leaked information that often proves true.

In this particular case, Tesla fan and investor Sawyer Merritt took to Twitter to reveal that one of his sources was on an all-hands call with Tesla CEO Elon Musk and others. Merritt started a thread and shared all of the information as it was relayed to him.

As it turns out, Musk told employees the upcoming car will not be called the Model 2. He also referred to it as the $25,000 electric car. The CEO went on to say that he's planning on starting production of the car in 2023. Then, he reportedly asked employees if they want the car to come with a steering wheel and pedals.


Keep in mind, Musk did previously say that Tesla was working on a fully autonomous $25,000 electric car. In addition, Musk is known to make such comments to motivate his employees to set difficult goals and remain optimistic about the future.

Tesla plans to be able to pull off the $25,000 starting price thanks to its new, upcoming battery cells and streamlined battery manufacturing processes. However, it seems if Tesla follows suit with its current lineup, that Full Self-Driving capability – regardless of how advanced it is in 2023 – won't likely come standard. We can only guess that people will have to pay for it, either upfront or as a subscription.

Musk has also said that the FSD package price will continue to rise as the tech improves, so the $25,000 car with FSD could easily cost well over $35,000.

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