The Tesla Model 2 aims to make electric vehicle ownership more affordable. Tesla probably won't use the name "Model 2" because it implies a smaller version of the Model 3 when it will really be a more economic version. Tesla's target is a $25k car, but the Model 3 was also supposed to be $35k but ended up being more expensive. The Model 3 currently sits at just under $47k in the US.
When Tesla created the Model 3, they essentially built a scaled-down, more efficient version of the Model S by removing features that were more expensive or hard to manufacture. Many of the switches, vents, and features were either simplified or completely removed, including the instrument cluster.
This includes replacing physical controls with on screen controls, like the handle for the glove box, mirror adjustment buttons, windshield wiper controls and many others.
Other controls were simplified to reduce complexity and therefore cost. Some examples include the simplified vent system and steering wheel buttons. The interior and exterior door handles were also redesigned to reduce the amount of moving parts.
Back in 2016 when the Model 3 was unveiled it wasn’t entirely clear which features were cost-cutting measures and which were feature iterations and would become standard in all future Teslas.
When Tesla debuted the new Model S in 2021 it became clearer which features may have been cost-cutting measures. We saw a lot of Model 3 features carry over to the redesigned Model S, such as a horizontal center screen, one continuous vent with on screen controls, but not every feature made it over.
These were seen as the compromises Tesla made to create a vehicle that is cheaper to manufacture when compared to the Model S.
The Model 3 doesn't have an air suspension, cooled seats, a rear screen, or an instrument cluster. It also has a slightly smaller center screen. So what more can Tesla remove or simplify from a Model 3 to create a more affordable, scaled-down vehicle?
Tesla would likely keep all software-only features since they don’t add much to the cost of the vehicle. Some possibilities may include fewer speakers, removing heated seats in the rear, removal of wireless chargers, and removal of the glass roof. Removing any cameras or the FSD computer is unlikely since the FSD package is profitable for Tesla and there are also safety features that depend on that hardware.
It’s possible that Tesla's Model 2 has transformed into the supposed Robotaxi mentioned at the Giga Rodeo Event. Elon has previously talked about creating a car without steering wheels or pedals, which would be fitting for a fully autonomous vehicle.
At Battery Day, Tesla said that standard range vehicles and future models will use lithium iron phosphate batteries. LFP batteries are cheaper to produce and have some advantages and disadvantages when compared to nickel batteries. Tesla would likely use the 4680 LFP battery for the Model 2. This would make the vehicle smaller and lighter, but may also offer less range.
Tesla's 4680 battery
Tesla’s 4680 cell is named after its dimension, 46mm x 80mm. They are much cheaper to manufacture, producing 5x more energy, 16% more range, and 6x more power, making them far more economic than traditional batteries. Using 4680 batteries, the Model 2 is expected to have a travel range of 250 to 300 miles.
Tesla will use a structural 4680 cell pack in a single body cast to manufacture the Model 2 as efficiently as possible. This along with advanced robotics will help Tesla achieve economies of scale and mass-manufacture their most affordable car yet.
In May 2022, during the Financial Times 'Future of the Car' interview (video), Elon stated that there is some probability that Tesla would make a car smaller than the Model 3, leaving the possibility open for both, a smaller Model 3 and a Tesla Robotaxi.
Don't expect the “Model 2” anytime soon, Elon has talked about Tesla finishing the CyberTruck this year and starting production in 2023. Tesla also has the Roadster and Semi to produce, which are very likely to be ahead of the Model 2.
By that time, we may see drastic improvements in FSD that could warrant a fully autonomous Robotaxi. I wouldn't expect the Model 2 before 2024 at very best, but we could see prototypes before then.
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Over the years, Tesla has introduced UI elements that indicate when specific hardware or software features are active—and these two new dots follow the same pattern.
In June 2024, Tesla introduced the ability to see which third-party apps have access to the vehicle’s location, and these new indicator dots have a similar goal — to improve transparency on features that impact privacy.
Green Dot
If you’ve noticed a green dot on your Tesla display or the instrument cluster for the Model S or Model X, then you have access to Tesla’s hands-free Autopilot feature.
The green dot is displayed on the screen whenever FSD or Autopilot is active and the vehicle is using the interior camera to monitor the driver’s attention.
The cabin camera does a much better job monitoring the driver than the old method of sensing torque on the steering wheel. The cabin camera detects driver attention by tracking the driver’s head and eyes and making sure they’re focusing on the road. If the driver looks away from the road for an extended period, the vehicle will warn the driver or issue a strike for repeat offenses.
If the cabin camera is occluded or obscured, or if it’s simply too dark, the vehicle will fall back to monitoring the driver by detecting torque on the steering wheel.
The presence of the green dot not only lets the driver know that the interior camera is being used but also lets them know whether they need to keep their hands on the steering wheel.
It’s important to note that images and video taken with the interior camera are processed in the vehicle and do not leave the vehicle unless you have granted access for Tesla to use them to improve functionality.
You can check your privacy and data sharing policy in Controls > Software and tap the Data Sharing button at the bottom.
Orange Dot
The orange dot functions similarly to the green one, but instead of indicating cabin camera usage, it appears when the vehicle’s microphone is active. This was added with software update 2025.2, which now listens for audio cues to detect emergency vehicles and other types of noises that could help the vehicle better understand its environment in the future.
Tesla is currently collecting this data to refine its ability to detect emergency vehicles even before they come into view. This capability is expected to be added in FSD v14 along with a larger model size.
Like cabin camera analytics, drivers can opt to share audio data with Tesla to improve detection accuracy. Many users received an “Allow Sound Detection Analytics” prompt following the recent update. If they consent, Tesla may use certain audio snippets to help improve their detection model. Any data transmitted to Tesla is not linked to a specific user or vehicle, so it can’t be tied to a specific individual.
Otherwise, all audio detection and processing is completed in the vehicle to ensure the driver’s privacy.
Tesla proves once again that it listens to its customers, and this is a perfect example. Since the Cybertruck’s launch with an adjustable air suspension, owners have been requesting suspension-related features.
One major request is the ability to remotely adjust the vehicle’s height. This could previously only be done from inside the cabin via the touchscreen, but Tesla has now added it to the latest version of the Tesla app. However, using the feature also requires vehicle software 2025.8 or higher.
This software update also brings improvements to the Cybertruck’s steer-by-wire system, which is set to come to future Tesla models. Unlike traditional rack-and-pinion steering, steer-by-wire is not directly connected to the wheels like other vehicles, and “road feel” does not carry through to the steering wheel. Instead, Tesla implements software-driven wheel feedback, which is being improved in this update.
Remote Height Adjust
Now, as of Tesla software update 2025.8 and Tesla App V4.42.5, Cybertruck owners can remotely adjust the height of their Cybertruck through the Tesla app. This setting is in the Controls section of the app.
Here, you can adjust to the four pre-set road heights, including High, Medium, Low, and Entry. For now, you cannot adjust to the two Off-Road Mode heights, which are Very High and Extract.
Now, if you don’t own a Cybertruck, you’re probably wondering why so many are asking for this feature. Well, if you want to go off-roading or even want to load something into the bed of your truck, it’s convenient to be able to remotely adjust the height of the car without having to go in it first.
You can also use it to show off the Cybertruck’s massive vertical range of motion - which can go nearly eight inches from Entry to Extract - all without having to hop into the Cybertruck.
Model S and Model X?
This feature could also potentially make its way to the Model S and Model X sometime in the future since both of these vehicles also have an adjustable air suspension. Today, the heights of these vehicles can only be adjusted inside the vehicle.
We’re sure some Model S and Model X owners would love to be able to adjust the suspension remotely, even if they may not have the same use cases — it’s still a nice to have feature.
Steer-by-Wire Improvements
Tesla has improved the Steer-by-Wire feedback and response on the Cybertruck’s yoke. This new update should provide more realistic wheel feedback. The feedback will now adapt to different road surfaces for a better driving experience.
That means the response and feedback of the wheel will now be more precise - and also be varied by what kind of terrain you’re driving on.
More Features
One more thing we’d love to see from Tesla regarding the Cybertruck is the ability to drop just one side of the suspension. This is possible in Service Mode, where you can deflate either the front or rear air tanks, thereby inducing a slant to the vehicle.
This makes loading items even easier, as the bottom of the tailgate is now even closer to the ground. Tesla showed off the feature during the Cybertruck’s initial reveal. While the Cybertruck never arrived with its built-in ramp, we’d still love the ability to dip the truck for easier loading.
Another feature that was supposed to arrive for the Cybertruck was related to Steer-by-Wire. Today, the Cybertruck can steer up to 7 degrees, but the actual hard limit for the rear wheels is somewhere between 10 and 14 degrees. We’d love to see Tesla expand the rear wheel steering limits which will help reduce the Cybertruck’s already tight turning circle.
Four-Wheel Steering gives Cybertruck a tighter turning radius than a Model S
At low speeds, rear wheels rotate opposite to the front wheels—enabling tighter maneuvering around the jobsite, parking lots, etc pic.twitter.com/nxDiRTZKEI
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