Tesla is developing a new smaller, cheaper EV, sources say
![The effort follows a decision by Chief Executive Elon Musk to scrap a highly anticipated low-cost EV project in 2024 and pivot the company to focus on robotaxis and humanoid robots [File]](https://th-i.thgim.com/public/incoming/3t3tb0/article70845826.ece/alternates/LANDSCAPE_1200/2026-04-09T100006Z_1842383784_RC2JSFA85SH2_RTRMADP_3_TESLA-CHINA-NEW-EV.JPG "The effort follows a decision by Chief Executive Elon Musk to scrap a highly anticipated low-cost EV project in 2024 and pivot the company to focus on robotaxis and humanoid robots [File]")
The effort follows a decision by Chief Executive Elon Musk to scrap a highly anticipated low-cost EV project in 2024 and pivot the company to focus on robotaxis and humanoid robots [File]
| Photo Credit: REUTERS
Tesla is developing an all-new smaller, cheaper electric SUV, four people familiar with the matter told Reuters.
The automaker has contacted suppliers in recent weeks to discuss details of the plan for the compact SUV – which would be a new vehicle and not a variant of Tesla’s current Model 3 or Y, the people said. The conversations involved the manufacturing process and specifications for various components, they said.
Published – April 10, 2026 02:50 pm IST
