The new compact SUV that Tesla appears to be planning is an all-new vehicle and not a variant of the current models, measuring 4.28 meters long — significantly shorter than the Model Y, Tesla’s best-selling SUV, which is about 4.78 meters long.
Tesla is developing an all-new, smaller and cheaper electric SUV, four people with knowledge of the matter told.
Elon Musk’s automaker has been in contact in recent weeks with several suppliers to discuss details of the plan for the compact SUVwhich would be a new vehicle and not a variant of Tesla’s current Model 3 or Model Y, sources said.
The conversations involved the manufacturing process and specifications of various components. Three of the sources said that the SUV would be produced in China, and one indicated that Tesla also intends to expand production for the USA and Europe.
The car would be 4.28 meters long, according to two of the sources. This is significantly shorter than the Model YTesla’s best-selling SUV, which is about 4.78 meters long.
This effort comes after the announcements, in 2024, that the company would abandon the long-awaited project of a low cost electric vehicleand more recently, in January, , reorienting the company towards robotaxis and humanoid robots.
A fundamental question is whether this new attempt to develop a smaller SUV is sign of a change in strategyback to human-driven electric vehicles, or whether the new model will align more with Tesla’s vision for fully autonomous vehiclesnotes Reuters.
A model of this type could potentially serve both purposesaccording to one of the people familiar with the new vehicle’s design and a Tesla employee with knowledge of the company’s current product philosophy.
The employee refused to confirm or deny details about any specific vehicle, but said that, generally speaking, the manufacturer now intends to build autonomous models, but which would offer the option of human driving.
While aiming for full autonomy across its range, Tesla recognizes that many global markets will not have significant adoption or regulatory acceptancedriverless vehicles for many yearssaid the source.
Tesla did not respond to requests for comment on plans for a new vehicle. The four people with knowledge of the project said it is still in a initial phase of development. Reuters was unable to determine whether Tesla has yet given the go-ahead for production of the car.
The manufacturer has a history of initiating product development who end up suffering major delays or being canceled.
Tesla introduced in 2017, for example, conceptual prototypes of a new version of its super-sports Roadster and a Semi goods truck, but it hasn’t even manufactured the Semi in series yet.
Two of the sources told Reuters that Tesla intends to offer the new vehicle to a Substantially lower price than the Model 3its base model, which starts at around $37K in the US. The cheapest Model 3 in Portugal is the version Model 3 Rear Wheel Drivewith a RRP starting at 36,990 euros.
Tesla plans to reduce costs in part by using a smaller batterywhich would mean a lower autonomy compared to the Model Y’s 492 to 526 km.
One of the sources added that the manufacturer would also offer a single engine electric instead of two, one performance option on current Tesla models. Tesla also wants make the car much lighterabout 1.5 tons against approximately two tons of the Model Y.
Three of the sources said that the new model would be produced at the Tesla factory in Shanghai. Although the timing remains uncertain, it is unlikely that automobile production start this yearthey stated.
