Tesla has done it again—only this time, it could mark a fundamental turning point in the global electric vehicle industry. In a stunning leak that’s already sending tremors across international markets, new details surrounding the Tesla Model 2’s revolutionary battery technology have surfaced, revealing a bold leap forward in energy storage, manufacturing efficiency, and cost control. Combined with rumored massive price cuts, Tesla’s next model could completely redraw the EV battlefield—especially in China, where affordable EVs have dominated until now.

From radically redesigned lithium-iron-phosphate (LFP) chemistry to advanced anode-free innovations and Giga Press-based hyperautomation, the Model 2 isn’t just a new car. It represents Tesla’s strategic strike at the heart of the global EV value chain, one that could upend the very economic engine that has powered China’s rise in the electric era.

The Heart of the Revolution: The ‘Sirius’ Battery Cell

At the core of this leak is the revelation of a new in-house battery cell, internally dubbed the Sirius Cell, marking a major departure from both the 2170 and 4680 cells Tesla has used so far. While retaining a prismatic form factor, Sirius utilizes next-gen LFP chemistry with an anode-free configuration, allowing greater energy density, faster charging, and significantly reduced material dependency.

Key advancements include:

Energy Density: 295–310 Wh/kg (a record-breaking number for LFP cells)

Charge Time: 10–80% in under 12 minutes

Cycle Life: 4,500+ cycles (equivalent to well over 1 million miles)

No Graphite, No Cobalt: Replaced by nano-structured silicon and local earth-abundant elements

Integrated Cooling Channels: Enhances thermal stability even under extreme fast-charging loads

This new architecture is reportedly cheaper to manufacture than traditional LFP packs by over 35%, especially when produced at scale in Tesla’s upgraded Giga Shanghai and Giga Mexico facilities. The secret lies not only in the chemistry but in Tesla’s full control of the battery supply chain—from mining contracts to in-house cell design, electrolyte formulation, and even casing materials.

Tesla Model 2: Not Just Cheap, But Smart, Fast, and Scalable

The Model 2, which Musk has long teased as a “future urban vehicle,” is no longer theoretical. Based on leaked production timelines, internal specs, and drone footage from Giga Mexico, here’s what we now know or can confidently infer:

Performance and Specs:

Range: ~280–310 miles (EPA est.), thanks to high-density Sirius Cells

Acceleration: 0–60 mph in ~6 seconds (RWD base variant)

Top Speed: Electronically limited to 120 mph

Autonomy: Tesla Vision 3.0 + Hardware 5, fully FSD-capable

Chassis: Cast in 3.75 seconds using Tesla’s new 50,000-ton Giga Press

But what truly differentiates Model 2 is how it’s built. Using next-gen single-piece front and rear megacasts, Tesla plans to reduce the part count from 370 in the Model 3 to just 35 in the Model 2’s frame. This, paired with structural battery integration, means lower assembly time, less labor, and drastically reduced factory floor space requirements.

Disruptive Economics: How Tesla Plans to Hit the $19,990 Price Point

Multiple insiders and leaked financial models suggest that Tesla is targeting a base price of $19,990, possibly with local incentives in markets like India, Brazil, and Southeast Asia reducing the sticker price even further.

Here’s how Tesla reportedly plans to pull this off:

Raw Material Localization: Tesla has signed mining and refining deals for lithium, iron, and silicon in Mexico, Australia, and the U.S., bypassing traditional supply chain bottlenecks.

Cell-to-Chassis Design: Eliminating modules and pack casings allows Tesla to build battery packs directly into the frame, saving space and money.

Hyperautomation: Using next-gen Giga Presses, production time per Model 2 unit may be reduced to under 45 minutes total.

No Frills Interior: A minimalist interface, no central screen, but full AI voice control and advanced HUD integrated into the windshield.

Vertical Software Stack: Tesla OS 12 will power all vehicle features, enabling over-the-air updates that continuously improve efficiency and performance.

The China Challenge: Tesla vs. BYD and XPeng

Tesla’s dominance has largely been in the premium EV segment—but with Model 2, it is declaring war on the lower-cost, high-volume segment that has been China’s fortress.

BYD, which sold over 3 million EVs in 2024, largely thanks to its Blade LFP battery, now faces a rival cell that is cheaper, denser, and faster-charging. Similarly, XPeng, NIO, and Leapmotor—all of whom relied on price/performance parity—are now racing to respond.

According to Ming Zhao, an EV supply chain analyst in Shenzhen:

“If Tesla undercuts BYD at scale while offering better tech, the floodgates open. This isn’t just a price war—it’s a technology war with economic implications.”

Already, early signals are evident:

BYD stock fell 9% the day the leak hit Chinese social media.

NIO reportedly paused its compact EV platform development for internal review.

CATL, China’s largest battery supplier, announced a “high-density LFP 2.0” roadmap one day after the Tesla leak.

Strategic Implications: A New Global EV Order?

The broader impact of the Model 2 and Sirius battery goes far beyond Tesla’s bottom line. If successful, it could:

Accelerate EV adoption in developing nations by breaking price and infrastructure barriers.

Restructure global battery manufacturing, shifting the center of gravity from Asia to the Americas.

Threaten legacy automakers, many of whom are years behind Tesla’s software-stack integration and cell-to-chassis design capabilities.

Kick off a new geopolitical race for lithium, silicon, and sodium—resources essential to this new battery generation.

Tesla’s rumored $2 billion investment in a dedicated LFP line in Giga Nevada suggests long-term confidence in this format. And with plans to license its new battery chemistry to third-party EV makers, Musk might be playing a longer, more collaborative game than his competitors realize.

Looking Ahead: AI Day 2025 and the Global Reveal

Elon Musk has hinted that Tesla AI Day 2025, scheduled for September, will be “not just about autonomy, but about affordability and abundance.” That event is now widely expected to include the official unveiling of the Model 2, alongside the Sirius battery and production-ready Giga Mexico footage.

If Tesla can deliver on even 80% of what the leaks promise, the EV world may be entering a new post-premium era—where the best cars are not only the smartest, but also the most affordable.

One thing is certain: Tesla is no longer content with being a premium automaker. With the Model 2, it aims to become the world’s automaker.