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Tesla Model 2 hatchback due in 2023 as Volkswagen ID.3 rival – report

The Tesla hatchback could be destined for Australian showrooms.


A new entry-level Tesla hatchback – priced from US$25,000 (AU$33,000), and unofficially referred to as the Model 2 – is due in 2023 as a competitor to the Volkswagen ID.3 in the small electric hatchback segment, according to a report from British publication Autocar.

Energy will reportedly be drawn from a new type of battery cell, supposedly permitting a 16 per cent increase in efficiency and lower manufacturing costs. While an exact kWh capacity figure is yet to be revealed, Tesla CEO Elon Musk has previously said a range of “less than 250 miles (400km)” would be “unacceptably low” for a Tesla car.

A line-up of two-wheel drive and all-wheel drive variants – as seen in the larger Model 3 – is likely, but not confirmed.

Tesla has previously claimed the all-new electric hatchback would be “a global model,” suggesting an Australian launch would eventually follow.

However, major markets such as Europe, the USA, and China could get the car years before it appears in Australian showrooms – as was the case with the Model 3 sedan, which went on sale in the US two years before arriving in Australia.

European examples of the new Tesla are expected to be assembled at the yet-to-be-completed Berlin Gigafactory in Germany.

As previously reported by CarAdvice, the new Tesla hatchback is being partially developed in China – and Australian-delivered variants would likely be built at Tesla’s Shanghai Gigafactory.

For reference, the Volkswagen ID.3 – which, along with the Renault Zoe, currently dominates the electric hatchback segment in Europe – develops 150kW/310Nm from a single motor mounted on the rear axle in flagship variants. In entry-level guise, a 45kWh lithium-ion battery pack allows a range of 330km on the WLTP cycle.

Artist impression below courtesy of CarAdvice render guru Theophilus Chin.


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William Davis

William Davis has written for Drive since July 2020, covering news and current affairs in the automotive industry. He has maintained a primary focus on industry trends, autonomous technology, electric vehicle regulations, and local environmental policy. As the newest addition to the Drive team, William was brought onboard for his attention to detail, writing skills, and strong work ethic. Despite writing for a diverse range of outlets – including the Australian Financial Review, Robb Report, and Property Observer – since completing his media degree at Macquarie University, William has always had a passion for cars.

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