Tesla reportedly developing new smaller, cheaper EV after killing Model 2
electrek.co
April 9, 2026
5 min read
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44/100
Summary
Tesla is developing a new smaller, cheaper electric SUV, following the cancellation of the Model 2 program. The new compact SUV will be produced at the Shanghai factory and priced significantly below the Model 3’s starting price of $34,000 in China and $37,000 in the US.
Key Takeaways
- Tesla is developing a new smaller, cheaper electric SUV, which will be produced at its Shanghai factory and priced below the Model 3's starting price of $34,000 in China.
- The new vehicle will be approximately 4.28 meters long and weigh about 1.5 metric tons, featuring a smaller battery pack and a single electric motor.
- Production of the new SUV is in early development, with a potential start date unlikely before 2026.
- This development marks a reversal from CEO Elon Musk's previous decision to abandon affordable EVs in favor of a Robotaxi program, which has faced delays and limited success.
Community Sentiment
Positives
- Tesla's decision to open the supercharger network enhances accessibility for EV users, facilitating smoother transitions to electric vehicles across the country.
Concerns
- The perception that Tesla's R&D has stagnated raises concerns about their ability to innovate in a rapidly advancing EV market, especially against fierce competition.
- The discontinuation of popular models like the S and X suggests a troubling trend in Tesla's product strategy, potentially alienating loyal customers.
- Concerns about Tesla's approach to safety and driver responsibility highlight significant ethical issues related to their autopilot features and overall vehicle design.
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