The automaker has contacted suppliers in recent weeks to discuss details of the plan for a new compact SUV. The conversations involved the manufacturing process and specifications for various components, they said.
Tesla is working on a new, more affordable electric SUV, according to a Reuters report citing people familiar with the matter.
Unlike earlier expectations of stripped-down variants, this model is being developed as a completely new compact SUV. Recent discussions with suppliers have focused on component specifications and manufacturing processes, the report said.
The sources have said the compact SUV would be produced in China, but there’s also a possibility that Tesla may expand production to the United States and Europe.
The vehicle is expected to be around 4.28 metres long, making it smaller than Tesla’s current top-selling Model Y. The reduced size is likely part of a broader effort to lower costs and make the vehicle more accessible.
Tesla is planning to save costs in part by using a smaller battery, which would mean a shorter driving range compared with 306 to 327 miles for the Model Y.
Elon Musk is pivoting the company to focus on robotaxis and humanoid robots. Whether this latest effort to develop a smaller SUV signals a strategy shift back to mass-market human-driven EVs?
However, Reuters noted that the project is still in its early stages, and it remains unclear whether Tesla has approved it for full-scale production.
