Tesla has taken a key strategic step in its global expansion by officially announcing that it will build its new compact model, provisionally called the “Model 2,” at its Gigafactory in Monterrey, Mexico. This vehicle is shaping up to be the most affordable in the company’s history, with an estimated price below $25,000 and a range of over 400 kilometers, which could democratize access to electric cars worldwide. 

The announcement was made by Elon Musk during a conference with investors, where he explained that the “Model 2” is specifically designed to meet the growing demand for electric vehicles in emerging markets while maintaining Tesla’s trademark level of innovation. The car will feature a next-generation battery with higher energy density and lower production costs, as well as the latest version of Tesla’s Full Self-Driving (FSD) system, allowing for constant over-the-air updates and continuous performance improvements.

The Monterrey Gigafactory will play a central role in this strategy. It is expected to generate more than 6,000 direct jobs and operate on renewable energy, in line with Tesla’s sustainability goals. Mexico, with its proximity to the United States and its free trade agreements, represents an ideal logistical hub to supply both the North American and Latin American markets.

Industry analysts highlight that this move could trigger a “price war” in the electric vehicle market, forcing other manufacturers to accelerate the launch of more affordable models. They also point out that Tesla’s entry into the low-cost segment could mark the beginning of a new era of mass electric mobility, in which price will no longer be a barrier to adopting clean technologies.

If projections hold true, the Model 2 could become the company’s best-selling model, surpassing even the successful Model 3 and cementing Tesla as the undisputed leader of the global electric revolution.