Tesla is developing a new compact electric SUV, expected to be produced in China.

Odaily Planet Daily reports: According to insiders, Tesla is developing a new, smaller, and more affordable electric SUV. In recent weeks, the company has reached out to suppliers to discuss detailed plans for this compact SUV, which will be an entirely new model rather than a revised version of the existing Model 3 or Model Y. Sources indicate that this compact SUV will be produced in China, while another source stated that Tesla also plans to expand production to the U.S. and Europe. The vehicle measures 4.28 meters (approximately 14 feet) in length, significantly shorter than Tesla’s best-selling Model Y SUV (approximately 15.7 feet). Previously, Musk decided to cancel the highly anticipated low-cost EV project in 2024 and refocused the company’s efforts on robotaxis and humanoid robots. Whether this latest attempt to develop a smaller SUV signals a strategic return to the mass market for manually driven electric vehicles—or whether the new model will better align with Tesla’s vision for fully autonomous vehicles—is a critical question. According to insiders and one employee, the vehicle may serve both purposes. The employee declined to confirm or deny specifics about any particular model but stated that, overall, Tesla now aims to build vehicles capable of autonomous driving while still offering a manual driving option. (Jinshi)