The second prototype He 100 V2 addressed the stability problems by changing the vertical stabilizer from a triangular form to a larger and more rectangular form. The oil-cooling system continued to be problematic, so it was removed and replaced with a small semi retractable radiator below the wing. It also received the still-experimental DB 601M engine which the aircraft was originally designed for. The M version was modified to run on "C3" fuel at 100 octane, which would allow it to run at higher power ratings in the future.