Foto HECTOR RETAMAL/AFP
The automaker has been actively engaging with suppliers in recent weeks, discussing key parameters of the future vehicle, including design, components and production features, reports Reuters. The car is expected to be about 4.28 meters long, which is noticeably shorter than the Model Y, making it more compact and potentially suitable for urban use.
According to sources, the main site for production may be China, but the company is also considering expanding production in the U.S. and Europe. At the same time, the launch date remains uncertain – the project is at an early stage, and the final decision on mass production has not yet been made.
Interestingly, this initiative comes after CEO Ilon Musk abandoned the idea of a budget electric car costing around $25,000 in 2024 and focused on the development of robotaxis and autonomous technologies. The new compact SUV could be a compromise: it will likely support both traditional driver control and autonomous driving features.
To keep the cost down, Tesla plans to use a lower-capacity battery, one electric motor instead of two, and a lightweight design. The car is expected to weigh about 1.5 tons, which is significantly less than the company’s current models.
Experts note that such a move may indicate Tesla’s partial return to a mass-market strategy. Against the background of growing competition, especially in China, where cheaper electric cars are already produced, the company needs to expand its audience.
Despite ambitious plans for autonomous transportation, including the Cybercab robotaxi, Tesla is still facing regulatory and technological constraints. Therefore, releasing a more affordable electric vehicle could be an important step to maintain sales and capacity utilization in the coming years.
