Is Tesla releasing a model 2?

Yes, Tesla is planning to release a next-generation, low-cost vehicle referred to as the “Model 2” in 2025. CEO Elon Musk[1] stated that the vehicle will be designed with a next-generation manufacturing process[1], and the price is expected to be between $25,000 and $30,000. The manufacturing of the vehicle will begin at the Gigafactory in Texas.

[1] forbes.com