Tesla Developing Smaller, More Affordable Electric SUV

Tesla is reportedly developing a new electric SUV that will be smaller and less expensive than its current offerings. The vehicle, measuring approximately 14 feet in length, will not be a variant of existing models like the Model 3 or Model Y.

Previously, Tesla aimed to introduce a budget EV priced around $25,000 but shifted focus to robotaxis in 2024. In early 2026, the company discontinued two models to concentrate on robotics, indicating a strategic pivot. The introduction of this new SUV could signify an attempt to expand Tesla's footprint in the auto market amidst prior model cuts.