Tesla is reportedly developing a new, smaller, and cheaper electric vehicle based on an all-new design, not derived from existing Model 3/Y platforms. The vehicle is said to be 168 inches long and may initially be manufactured in China, complicating US sales due to tariffs. Production approval is still pending, and the project represents a shift from the previously canceled Model 2.
Background
Tesla currently has a limited vehicle lineup after phasing out older models and facing slow Cybertruck sales, creating pressure to expand affordable options. The company had previously planned a 'Model 2' budget EV but canceled it earlier.
- Source
- Ars Technica
- Published
- Apr 9, 2026 at 10:10 PM
- Score
- 6.0 / 10