Tesla is working on a compact EV with a projected price of just $25,000. Now, Kolesa has speculative renderings of what the front and rear of the tinier model might look like.

Kolesa imagines the vehicle as an egg-shaped hatchback. The styling in front takes cues from the Model 3. There's an arched roofline. Along the sides, there are flush door handles. At the back, Y-shaped taillights are underneath the rear glass, and there's an angular shape for the hatchback. The design in this rendering seems a bit too conservative, even by Tesla's minimalist standards.

Gallery: Tesla Model 2 Rendering

There are not many specifics available about the smaller Tesla. Some info suggests that the company might not even call it the Model 2. An alternative name possibility is Model Q.

Musk allegedly wants production to begin in 2023, and he's reportedly considering whether the vehicle should even have a steering wheel and pedals. This seems extremely optimistic given the current state of autonomous driving technology.

The low price is possible because the tiny Tesla would make use of the company's next-gen battery cells and use a streamlined battery manufacturing process. This can apparently reduce costs by as much as half.

There's even a rumor that Tesla already has a prototype of the compact EV in China. The company's division in that country is allegedly spearheading the car's development. The first production of test vehicles could start in late 2021, which fits with Musk's 2023 launch goal.

Tesla currently builds the Model 3 at its Gigafactory 3 in China. During the factory's opening ceremony, Musk announced plans to design and produce a vehicle in China and sell it worldwide. The company even accepted design ideas from anyone who wanted to submit them, whether they were in the auto industry or just an everyday person.

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