Overview
- Telsa, which contacted suppliers in recent weeks, was reported Thursday by Reuters to be working on an all-new compact SUV that is not a Model 3 or Y variant.
- Initial production is expected at Tesla’s Shanghai factory, and one source said output could later expand to the United States and Europe.
- Sources described the project as early in development with no production green light, and they said manufacturing is unlikely to begin this year as Tesla declined to comment.
- The vehicle is targeted to undercut the Model 3’s entry price by using a smaller battery, a single motor, and a lighter curb weight near 1.5 metric tons, and that matters because the battery is typically the most expensive part of an EV.
- The effort follows Elon Musk’s 2024 cancellation of a low-cost model, and a Tesla employee said new designs could support driverless operation while keeping steering and pedals to sell in markets where autonomy is not yet allowed.