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Tesla Reportedly Planning Smaller, Cheaper Compact SUV

The unconfirmed project signals a possible return to mass‑market cars following a 2024 pivot to robotaxis.

Overview

  • Reuters, citing four people familiar with the matter, reported Thursday that Tesla has contacted suppliers about an all‑new compact SUV that is not a variant of the Model 3 or Model Y.
  • Sources say the vehicle would measure about 4.28 meters (roughly 14 feet) and be produced first in Shanghai, with possible expansion to factories in the United States and Europe.
  • Two sources said Tesla is targeting a price below the base Model 3 by cutting weight to about 1.5 metric tons, using a smaller battery, and offering a single motor, which would trade some driving range for a lower sticker price.
  • The project remains in early development with no production greenlight, and the people familiar said output this year is unlikely; Tesla did not respond to requests for comment.
  • One source and a Tesla employee said the design could support both driverless use and human driving to serve markets where regulators have not approved fully autonomous vehicles.