Tesla Inc. is reportedly working on an all-new compact SUV, a move that signals a revival of the company's plans to produce affordable electric vehicles. The Austin, Texas-based company has contacted suppliers to discuss details of the plan, which would be a new vehicle and not a variant of Tesla's current Model 3 or Y.
The compact SUV is expected to be produced in China, with the possibility of expanding production to the United States and Europe. The car would be 4.28 meters in length, significantly shorter than Tesla's top-selling Model Y SUV.
The effort follows a decision by Chief Executive Officer Elon Musk to scrap a highly anticipated low-cost EV project in 2024 and pivot the company to focus on robotaxis and humanoid robots.
A key question is whether this latest effort to develop a smaller SUV signals a strategy shift back to mass-market, human-driven EVs or whether the new model would align more with Tesla's vision for fully autonomous vehicles.
