Tesla (NASDAQ:TSLA) shares moved slightly higher in premarket trading following a Reuters report that the company is working on a new compact electric SUV expected to be smaller and more affordable than models currently in its lineup. The vehicle could signal a renewed push toward the mass-market segment for the Austin-based EV maker.
According to Reuters, Tesla has recently reached out to suppliers to discuss production methods and component requirements for the proposed model. The vehicle is reportedly being designed as a completely new product rather than a modified version of the Model 3 or Model Y.
Sources cited by the report said the new model is planned for production at Tesla’s Shanghai facility. One of the sources added that the company also intends to expand manufacturing to plants in the United States and Europe.
The compact SUV is expected to measure around 4.28 meters in length, notably shorter than the Model Y, which is roughly 4.79 meters long. It would also carry a price tag significantly below Tesla’s entry-level Model 3, which currently starts at about $37,000 in the U.S.
Cost reductions are expected to come in part from a smaller battery pack, a single electric motor, and a lighter vehicle weight of about 1.5 metric tons compared with roughly two tons for the Model Y.
The project is still in its early stages, and production is not expected to begin this year. It is also unclear whether Tesla has formally approved the vehicle for full-scale production.
Tesla CEO Elon Musk had previously canceled a widely anticipated low-cost EV program in 2024 as the company shifted its focus toward robotaxis and humanoid robotics.
Join the discussion: Connect with other investors on your favorite stocks or explore the top-talked-about stocks on our Breakout Boards.
This article was written by the editorial team at InvestorsHub/ADVFN and is provided for informational purposes only. In some cases, editorial staff may use artificial intelligence–based tools to assist in the research, drafting, or editing of content, under human review and oversight. This article does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. The views expressed are based on publicly available information believed to be reliable at the time of publication, but accuracy or completeness is not guaranteed. Readers should conduct their own independent research and consult a qualified financial professional before making any investment decisions.
mdb1
7 hours ago
Genz2
10 hours ago
boston745
13 hours ago
jimr1717
19 hours ago
boston745
21 hours ago
jimr1717
1 day ago
Genz2
1 day ago
boston745
2 days ago
jimr1717
2 days ago
boston745
2 days ago
mdb1
2 days ago
jimr1717
2 days ago
Genz2
2 days ago
Genz2
3 days ago
boston745
3 days ago
jimr1717
3 days ago
jimr1717
3 days ago
mdb1
3 days ago
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Tesla shares tick up on report of smaller, lower-cost EV under development
Tesla (NASDAQ:TSLA) shares moved slightly higher in premarket trading...