Tesla Is Working On A Smaller SUV Musk Once Called Pointless, Report Says

Tesla has spent the better part of the last two years insisting that cheap, human-driven EVs are yesterday’s news. Instead, Tesla CEO Elon Musk has repeatedly pointed to robotaxis, artificial intelligence, and humanoid robots as the company’s future. Now, though, it sounds like reality may be setting in once again.

According to a new report from Reuters, Tesla is developing an all-new compact electric SUV that would be smaller, lighter, and significantly cheaper than the current Model Y. Rather than simply creating a stripped-down version of an existing model, sources say this would be an entirely new vehicle.

Read: Most Automakers Clear Inventory With Discounts. Tesla Raised Model S And X Prices Instead

The SUV is alleged to be in the early stages of development, but suppliers have already been contacted about parts, production methods, and specifications. Three sources told Reuters the vehicle is expected to be built initially in China at Tesla’s Shanghai plant, with possible production later expanding to the United States and Europe. The report adds that Tesla has not responded to requests for comment about the project.

Will It Reach The U.S.?

While it’s possible that Tesla would build and sell a model that remains out of the North American market, it’s more likely that it would be a global model in the end. The brand clearly prefers to build and sell global models, and the nature of this one, being a low-cost model, makes far more sense at a global scale than it does as a niche product.

The new model is said to measure about 4.28 meters (168.5 inches) long. That would make it roughly 0.5 meters (19.7 inches) shorter than today’s Model Y, putting it closer in size to compact crossovers like the Hyundai Kona Electric and Volvo EX30.

Sources also claim Tesla wants the SUV to weigh around 1.5 metric tons, versus roughly 2 tons for a Model Y. To get there, the company is reportedly planning to fit a smaller battery pack and offer just a single electric motor.

Smaller Size, Smaller Price Tag

That would almost certainly reduce range and performance, but it could also finally deliver the genuinely affordable Tesla that buyers have been waiting years to see.

The same sources say that the new SUV is expected to cost substantially less than the current entry-level Model 3, which starts at around $37,000 in the U.S. Hilariously, if this does all come to pass, it’ll fly in the face of comments Musk made last year about the idea of a $25,000 human-driven car being pointless.