Tesla stock edges higher on report it is developing smaller, cheaper EV
Investing.com — Tesla stock edged higher premarket after a report from Reuters said the company is developing an all-new compact electric SUV that would be smaller and cheaper than its existing lineup.
The vehicle could mark a strategic pivot back toward mass-market vehicles for the Austin-based electric vehicle giant.
Reuters stated that Tesla has contacted suppliers in recent weeks to discuss manufacturing processes and component specifications for the new vehicle, which would be distinct from the existing Model 3 and Model Y rather than a variant of either.
Three sources told Reuters the car would be produced at Tesla’s Shanghai factory, with one adding that Tesla also aims to expand production to the U.S. and Europe.
The vehicle would measure approximately 4.28 meters in length, which is significantly shorter than the Model Y’s roughly 4.79 meters, and would be priced well below Tesla’s entry-level Model 3, which starts at around $37,000 in the U.S.
The report states that cost savings would come partly from a smaller battery, a single electric motor and a lighter overall weight of around 1.5 metric tons versus approximately two tons for the Model Y.
The project remains in early development and production is unlikely to begin this year. It is also said to be unclear whether Tesla has formally approved the vehicle for production.
Tesla’s Chief Executive Elon Musk scrapped a widely anticipated low-cost EV project in 2024 to focus on robotaxis and humanoid robots.
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