Tesla supposedly developing new entry-level SUV
Tesla is reportedly working on a new small electric SUV, according to Reuters.
A group of four people close to Tesla have reportedly confirmed that the Elon Musk-led carmaker has contacted several suppliers to discuss plans for a compact SUV, which would be an all-new model and not a variant of the existing Model 3 or Model Y.
New Tesla SUV: What we know so far and launch date
The talks are said to have covered the manufacturing process and specifications for various components. The sources said that the car will be initially built in Tesla’s Gigafactory Shanghai facility, with production expanding to the United States and Europe.
Of those involved, two said the car will be 4.28 metres long, meaning it would straddle the B- and C-segment SUV class. Nonetheless, it remains significantly shorter than Tesla’s best-selling 4.57m Model Y.
Should it come to fruition, Tesla’s new SUV would cost less than the entry-level Model 3 saloon, which starts at $37,000 USD – around £27,550 based on the current exchange rate.
The tip-off added that Tesla planned to save costs by adopting a single-motor electric powertrain and using a smaller battery than existing models. The timeline for Tesla’s new SUV remains unclear, with production unlikely to begin this year.
What’s next?
The short answer is “who knows?”
Despite dominating the EV market with its Model 3 and Model Y, Tesla’s boss, Elon Musk, has a history of cancelling new models at the last minute and flip-flopping on the brand’s roadmap.
A rebooted Tesla Roadster was unveiled in 2017, with a 2020 production date. Manufacturing was then moved to 2022, 2023, 2024, and 2025. Musk promised only recently that production would begin in April 2026.
In 2020, he announced that Tesla would build an entry-level Model 2 costing around $25,000 (around £19,000). In 2024, Musk went on to deride the project as “silly” and “pointless” as Tesla abandoned the Model 2 and pivoted towards driverless vehicles and autonomous driving with its Robotaxi.
Last August, Tesla killed off the Model S and Model X in Europe, then quietly brought them back a few months later in October. Once again, these two ageing models were culled in January this year as Tesla repurposed its Fremont factory (their place of build) in California to build its Optimus humanoid robots.
Yet just recently, a final ‘Signature’ edition of the Model S and X was announced as an exclusive goodbye to a select audience of 350 customers.
