Tesla is reportedly developing a smaller, cheaper electric SUV, two years after CEO Elon Musk killed the company’s affordable EV program and called building cars for human drivers “pointless” The new compact SUV would be produced at Tesla's Shanghai factory and priced significantly below the Model 3’�s $34,000 starting price in China and $37,000 in the US. It would be an entirely new vehicle, not a variant of the existing Model 3 or Model Y. Production is currently in early development and production is unlikely to begin in 2026. This move reverses from Musk's decision in 2024 to abandon the $25,000 electric car, codenamed NV9, in favor of the Robotaxi program.