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4h ago

Tesla Is Said to Be Developing a Smaller, Cheaper Compact SUV

The early plan hints at a cautious return to lower-cost models after last year’s robotaxi pivot.

The logo of a Tesla electric vehicle is placed on a car outside a dealership in Drogenbos, Belgium November 25, 2023. REUTERS/Yves Herman/File Photo
SHANGHAI,CHINA - MARCH 29: An aerial view of Tesla Shanghai Gigafactory on March 29, 2021 in Shanghai, China. Tesla Shanghai Gigafactory is reportedly producing vehicles at a rate of about 450,000 cars per year. (Photo by Xiaolu Chu/Getty Images)
Smaller, cheaper, lighter than the Model Y?
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Overview

  • Tesla, which Reuters reported Thursday had contacted suppliers about an all-new compact SUV, is exploring a smaller, lower-cost addition to its lineup.
  • The vehicle would be about 4.28 meters long and, according to three sources, would start production in Shanghai with potential expansion to the United States and Europe.
  • Two sources said Tesla targets a price below the entry Model 3 by using a smaller battery, a single motor, and a lighter body of roughly 1.5 metric tons.
  • One source and a Tesla employee said the car may be engineered for both driverless service and human driving with optional steering and pedals, and Tesla declined to comment.
  • The project remains early with no clear production green light and manufacturing viewed as unlikely this year, following Musk’s 2024 cancellation of a $25,000 car as rivals in China push cheaper EVs.