Morgan Stanley says the rumored Tesla Model 2 could be a smaller version of the Model Y, and could hit 700k sales in 2025.

Today Morgan Stanley’s Adam Jonas said that the Tesla Model 2 could be a smaller version of the Model Y electric Crossover and it could reach 700K sales in 2025.

one month later, Tesla reveals that it will working on a compact SUV that comes at an affordable price range which is “Tesla Model 2” model is based on 3rd generation architecture that will slash the cost of production of its electric vehicles.

This model needs is becoming more urgent as Chinese automaker hit saturation on their own, needs to achieve major cost reductions of their own and look to increase their share of other markets.

one of the largest leading car analysts, Morgan Stanley’s Adam Jonas shares some fascinating insights about his company and EV-Volumes, industry analysts.

“Tesla Model 2 as smaller Model Y, not a smaller Model 3,” said Jonas, also said Model 2 will be based on an LFP battery with 4680 cells to allow low cost.

also said, “The small/compact SUV field is huge in Europe so, Model 2 will especially important in that market, he commented.

Jonas also predicts that Model 2 will launch closer to the production time than the previous launch of Model 3 and Model Y. This is because Tesla wants to clear the “Osborne effect” where the new product launch could break the order of existing products because the customer can hold out of the new model.

As you know Model Y is popular in the market, it is best selling family car in 2022 worldwide and the 2nd best-selling SUV in Australia in March, The model Y RWD variant recently sold out in Australian For Quarter 2 also earlier delivery is now expected until this July.

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Morgan also predicts that Tesla next level Model will be launched later in 2024 with 300,000 units delivery by 2025 whereas Viktor Irle predicts that Model 2 will cross 700,000 units by 2025, mostly these will be sold in China and Europe, both of them predict for these countries.

Here is the EV-Volumes predicted data

Tesla Model 2 could be a smaller version of the Model Y
Credit: EV-Volumes

Irle also predicts that Tesla Cybertruck production will reach to 450,000 units by 2027, with 75% of sales in the US.

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