Multiple media reports say that Tesla (TSLA) is developing a smaller and cheaper electric sport utility vehicle (SUV) as it tries to boost its declining sales.
Specifically, Tesla is designing a compact SUV that will be an entirely new vehicle and not a variant of the company’s current Model 3 or Y.
The new SUV will initially be produced in China, with plans to expand production to the U.S. and Europe.
Tesla is aiming for the compact electric vehicle to be about 14 feet in length, which is shorter than Tesla’s top-selling Model Y SUV, which is nearly 16 feet long.
Within Tesla, the compact SUV is being revived after Chief Executive Officer (CEO) Elon Musk scrapped a low-cost SUV project in 2024.
More recently, Tesla has been focusing on driverless robotaxis and humanoid robots rather than its mass-market human-driven electric vehicles.
However, Tesla’s electric vehicle sales have dropped off significantly in recent years, hurting the company’s share price.
The media reports say that Tesla is hoping the new compact electric SUV will give its worldwide sales a much-needed boost.
Elon Musk has long touted a Tesla electric vehicle with a starting price of $25,000 U.S. But, so far, such a vehicle has never materialized.
TSLA stock has declined 22% this year to trade at $343.25 U.S. per share.
Tech Insider
