Tesla is working on a more affordable compact electric SUV aimed at the mass market. Production could start in China, with a price below the Model 3.

Tesla is proposing to develop a compact electric SUV, smaller and cheaper, according to information provided by sources within the company. This new model will not be a variant of the current Tesla Model 3 or Y, but a completely new vehicle aimed at attracting a broader segment of customers. The SUV would be 4.28 meters long, significantly smaller than the Model Y, and could be produced in China, with plans to expand production in the United States and Europe. Although Tesla abandoned a previous project for a cheap electric vehicle, the new SUV could mark a return to mass-market vehicles, having options for both autonomous driving and human drivers.

The price would be significantly lower than the Model 3, and production could start soon, although details remain unclear. Tesla intends to reduce costs by using a smaller battery and a single electric motor, making the car lighter and more affordable.