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Tesla reportedly developing new smaller, cheaper EV after killing Model 2

Tesla (TSLA) reportedly developing new smaller, cheaper EV after killing Model 2

electrek.co

April 9, 2026

5 min read

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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.

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Community Sentiment

Negative

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.