Dubbed the “Model 2” by Tesla watchers, the compact electric car was one of several revelations from Tesla CEO and co-founder Elon Musk at the EV maker’s Battery Day in 2020.

It will be the first locally-designed electric car made at Tesla’s China Design Centre, and will be made at the Shanghai gigafactory.

According to a report from China tech news site, the new vehicle will be a “hatchback version of the Model 3” and is expected to sell for around 160,000 yuan ($A32,526 converted) and will have a driving range of somewhere between 350-450km driving range.

VIDEO: Is THIS What The Under 25k 2023 Tesla Model 2 Will Look Like?

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