Tesla considers a smaller, lower-cost electric SUV

Reuters reports Tesla is in early discussions about an all-new, smaller electric SUV that could be priced below the Model 3, with initial production expected in Shanghai and no confirmed timeline.

Tesla is reported to be in early discussions about a new, smaller electric SUV that would sit below the company's current entry-level model in price. Reuters sources say the vehicle is being developed as an all-new model rather than a shortened version of the Model 3 or Model Y. Initial supplier talks and design discussions have reportedly begun, and production is expected to be centred initially in Shanghai. Sources emphasised the project has not received final approval and manufacturing is not expected this year. Reported details: - The SUV is being developed as an all-new model, not a shortened Model 3 or Model Y. - The proposed length is roughly 4.28 metres, smaller than the Model Y at about 4.8 metres. - Reuters sources reported pricing would undercut the Model 3, which retails around $34,000 in China and $37,000 in the US. - Initial production is expected at Tesla's Shanghai factory, with possible later expansion to the US and Europe. - Cost reductions are expected via a smaller battery pack, a single-motor drivetrain, and a lighter build targeted near 1.5 tonnes. - The project is described as early-stage, without final approval, and no firm production timeline has been set. Summary: If developed, the model would expand Tesla's lineup toward a smaller, lower-cost SUV and is reported to be engineered to allow both autonomous and conventional driving modes. Initial production plans point to Shanghai with possible later expansion, but the project has not been approved and a timeline is undetermined. Undetermined at this time.