Tesla plans 4.28-meter compact SUV priced below $37,000
Tesla is developing a 4.28-meter compact SUV that is shorter than the Model Y and will be priced below its $37,000 entry-level Model 3. The vehicle, slated for Shanghai production, will feature a smaller battery and single electric motor to cut weight to about 1.5 metric tons.
1. Development Plan
Tesla has initiated talks with suppliers to define manufacturing processes and component specifications for an all-new compact SUV, though the project remains in early development without formal approval for production.
2. Vehicle Specifications
The SUV is designed to measure approximately 4.28 meters in length—shorter than the Model Y’s 4.79 meters—and will use a smaller battery and single electric motor, reducing curb weight to roughly 1.5 metric tons.
3. Production Expansion
Initial assembly is targeted at Tesla’s Shanghai factory, with plans under consideration to extend production capacity to facilities in the U.S. and Europe once development milestones are met.
4. Strategic Implications
This model represents a return to more affordable, mass-market vehicles and could bolster volume growth and margins, but timelines remain uncertain given past shifts in Tesla’s low-cost EV strategy.