Tesla is reportedly developing a new compact SUV that will be more affordable.

Sources familiar with the matter revealed that Tesla is developing a completely new, smaller, and cheaper electric SUV. The company has contacted suppliers in recent weeks to discuss the details of this compact SUV plan, which will be a completely new vehicle, rather than a facelift of the existing Model 3 or Model Y. One source said the compact SUV will be produced in China, while another indicated that Tesla also plans to expand production to the US and Europe. The vehicle will be 4.28 meters (approximately 14 feet) long, significantly shorter than Tesla's best-selling Model Y SUV (approximately 15.7 feet). Previously, Musk decided to cancel the highly anticipated low-cost electric vehicle project in 2024, shifting the company's focus to robotaxis and humanoid robots. Whether this latest attempt to develop a smaller SUV signals a strategic return to mass-market, manually driven electric vehicles, or whether the new car will better align with Tesla's vision of fully autonomous vehicles, is a key question. According to sources and an employee, the model may serve both purposes. The employee declined to confirm or deny any specific model details but stated that, overall, Tesla's current goal is to create vehicles that offer driverless operation but also provide a human driver option. (Golden Ten)