Tesla is reportedly developing an all-new compact electric SUV aimed at lowering the entry point to its lineup, according to a recent Reuters report citing multiple sources familiar with the matter. The project is said to still be in its early stages, with the automaker having reached out to suppliers in recent weeks to discuss component specifications and manufacturing processes.
Unlike earlier expectations of a stripped-down variant of an existing model, the new EV is described as a completely fresh design rather than a derivative the Model 3 or Model Y. Sources claim the SUV will measure around 4.28 metres in length, making it notably smaller than the Model Y and positioning it closer to compact crossovers commonly seen in global urban markets.
Cost reduction appears to be a key priority for the new SUV, with sources indicating that Tesla plans to equip it with a smaller battery and a single electric motor. These changes would likely reduce both production costs and overall weight, with the vehicle expected to be significantly lighter than the Model Y.
The trade-off, however, would be a shorter driving range, which could position the vehicle more as a city-focused model rather than a long-distance option. Still, a lower price point could make it attractive in markets where affordability remains a major barrier to EV adoption.
Three sources told Reuters that the new compact SUV will be manufactured primarily at Tesla’s Shanghai factory. There are also indications that the company may eventually expand production to the United States and Europe.
However, the timing of the model’s debut remains unclear, with sources suggesting it is unlikely to enter production this year. Even then, given Tesla’s track record with delayed projects – most notably the next-generation Roadster and the Semi – there is a possibility that this model could take considerably longer to reach the market. That said, this is still based on unconfirmed reports, so take it with a grain of salt.
On a somewhat related note, Elon Musk has recently confirmed that Tesla has discontinued its Model S and Model X EVs, with only “a few hundred” still available for sale. As previously reported, the move was done in favour of reallocating resources towards robotics and AI-driven initiatives.
(Source: Reuters)
