Austin, Texas – May 27, 2025 – In a development that could redefine the electric vehicle (EV) industry, Elon Musk has allegedly leaked a groundbreaking new battery formula that could make the long-anticipated Tesla Model 2 the most affordable Tesla ever produced.
After years of speculation, it appears the Tesla Model 2 — Musk’s long-promised compact EV for the masses — is on track for a launch in late 2025 or early 2026, with a target price under $20,000. The key to this aggressive pricing? A revolutionary new battery chemistry that could slash production costs by as much as 40%.
According to insider sources and early tech disclosures, the new battery isn’t just cheaper — it’s more energy-dense, safer, and faster to manufacture than anything Tesla has produced to date.

Though Tesla has not officially confirmed the formula, several insiders close to the company claim that Tesla engineers have developed a high-silicon anode lithium battery with a cobalt-free cathode, which reduces dependency on rare-earth materials while significantly improving performance and lifespan.
Key Advantages of the New Battery Formula:
Cost Reduction: Up to 40% cheaper than current lithium-ion packs
Higher Energy Density: Estimated 350 Wh/kg
Faster Charging: 0 to 80% in under 15 minutes
More Eco-Friendly: Cobalt- and nickel-free design
Scalable Production: Optimized for Tesla’s Gigafactories globally
“This is the final piece of the puzzle for affordable EVs,” Musk allegedly said in a closed investor call, according to a leaked transcript shared with Tech Insider.
Why the Tesla Model 2 Matters
The Model 2 isn’t just another Tesla — it represents Musk’s long-term vision of a truly mass-market electric vehicle. With a sleek hatchback design, autonomous-driving capabilities, and over 300 kilometers (186 miles) of range, the Model 2 is being engineered to compete with — and undercut — competitors like the BYD Dolphin, the upcoming Toyota Urban EV, and Volkswagen’s ID.1.
At under $20,000, the Model 2 could make EV ownership mainstream for millions — particularly in developing markets and urban centers.
Production Plans and Global Impact
Tesla is expected to begin trial production at Giga Mexico and Giga Berlin by late 2025. Sources suggest that Tesla is building fully automated battery lines, using the leaked formula as part of their next-gen 4680 battery architecture.