Tesla is un-canceling its plan to build a smaller, cheaper EV: report

April 9, 2026 Andrew J. Hawkins

Tesla Robotaxi on a graphic red background.

It looks like a smaller, cheaper Tesla is back on the menu.

Today, Reuters is reporting that the electric automaker is calling around to suppliers about building an all-new - that is, not based on the Model 3 or the Model Y - electric SUV that would be more affordable than its current lineup. The report, which is based on four anonymous sources in the know, said the vehicle would be built first in China, before eventually being brought to the US and European markets.

If true, this would represent a pretty major reversal for Tesla, and especially for Elon Musk, who has insisted over the past few years that the company doesn't need to make …

Read the full story at The Verge.

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