What new vehicle is Tesla reportedly working on?

Tesla is reportedly developing a new, smaller electric SUV that is distinct from its current Model 3 and Model Y.

What happened to Tesla's previous budget EV project?

Tesla had previously been working on a budget EV with a $25,000 target price, but reportedly abandoned this effort in early 2024 to focus on robotaxis.

How does the potential new Tesla SUV compare in size to the Model Y?

The reported new electric SUV would be approximately 14 feet long, making it shorter than the 15.7-foot Model Y.

Home / Technology / Tesla Eyes Cheaper EV Market with Smaller SUV

Tesla Eyes Cheaper EV Market with Smaller SUV

9 Apr

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Summary

Tesla is reportedly developing a new, smaller electric SUV.
This new vehicle will be distinct from existing Model 3 or Y.
The company previously paused a $25,000 budget EV project.

Tesla Eyes Cheaper EV Market with Smaller SUV

Tesla is reportedly developing a new, smaller electric SUV, according to sources cited by Reuters. This upcoming vehicle would be a distinct model, not a variant of the existing Model 3 or Model Y, and would measure approximately 14 feet in length, making it shorter than the current Model Y. The company has previously explored a budget-friendly EV, aiming for a $25,000 price point, but this effort was reportedly abandoned in early 2024 to concentrate on robotaxis. In a move to refocus on robotics, Tesla also discontinued two EV models at the start of 2026. This new project could indicate a renewed focus on expanding its automotive offerings, though its realization remains uncertain.

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