Tesla’s new car is expected to be its cheapest model yet — here’s when you can get the budget-friendly EV

Tesla Motors says it is gearing up to launch its first truly low-cost electric vehicle (EV), unofficially referred to as the Model 2. Expected to debut in 2024, the budget EV will come with an MSRP between $25,000 to $30,000 — making it one of the lowest-priced EV models to hit the U.S. market.

Currently, Tesla’s most affordable car is the Model 3, which now starts with an MRSP of around $39,000.

Tesla’s Model 2 is expected to be a hatchback, with the company offering options and upgrades similar to those available for its mid-priced cars and trucks — such as battery upgrades and service subscriptions.

While Tesla manufactures its more expensive cars in the U.S., the affordable EV is likely to be manufactured primarily at Tesla’s forthcoming factory in Monterrey, Mexico, with some production potentially also taking place at its facility in Austin, Texas.

Tesla uses a vertical integration strategy — designing its own batteries, software, and equipment, which helps control costs.