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The Electric Car from Tesla, Possibly Called Tesla Model 2, Will Have the Size of the Successful BYD Dolphin, a Chinese Compact That Conquered Global Markets, Including Brazil
Elon Musk, CEO of Tesla, has been fueling expectations for an entry-level electric car for some years, and it seems that in 2025 this promise will become a reality. Information about the Tesla Model 2 is still limited, but it is speculated that it will be built on a completely new platform, with significantly lower costs compared to existing Tesla models.
Initially, production may occur at the Giga Factory in Monterrey, Mexico, or at the factory in Berlin, Germany. Elon Musk is also negotiating the construction of a factory in India, aiming for a model priced around US$ 25,000.
Opportunity for BYD and Tesla in South America
If Elon Musk’s plans materialize, BYD, known for its presence in various segments of electric vehicles, could find a unique opportunity in the U.S. The BYD Dolphin, which is already selling well in Brazil, could be a significant competitor to the Tesla Model 2. In the meantime, Tesla, registering the brand in Chile, is pointing toward entry into South America, leveraging the rich lithium reserves and the growing demand for electric cars in the region.
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Brazil records incredible growth in electric cars with a historic 17.7% share in April, and Chinese brands accelerate their dominance over the Brazilian automotive sector in 2026.
This is an intriguing moment for the electric car market, with companies like BYD and Tesla looking to expand their global presence and offer more affordable options for consumers. As the plans materialize, competition in this sector promises to intensify, driving innovations and making electric cars more accessible to a wider audience.
Tesla Model 2 Could Be Compared to Chinese BYD Dolphin
The BYD Dolphin, a compact electric vehicle, has “conquered” the global market with its combination of efficiency, modern design, and commitment to sustainability. Manufactured by BYD, a Chinese giant in technology and electric vehicles, the Dolphin is standing out, especially in markets like Brazil, where the demand for electric cars has been growing.
The Tesla Model 2, from the manufacturer billionaire Elon Musk, on the other hand, intends to go “head to head” with the Dolphin. The new electric car is expected to take advantage of Tesla’s new “4680” battery technology, which allegedly offers significantly improved energy density and therefore greater range.
It is not entirely clear how small the new compact EV will be, but as Tesla aims to halve the manufacturing cost of its models, the Model 2 could cost less than US$ 40,000 (around R$ 208,000 at direct conversion), given the starting cost of around US$ 64,000 (R$ 333,000) for the best-selling Model 3 sedan.
The next-generation EV will be supported by Tesla’s third-generation platform, which will help make it cheaper to build than any of its four existing vehicles – the mid-size Model 3 sedan and its sibling SUV, the Model Y, along with the larger, older Model S and Model X cars.
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