Tesla is reportedly developing an all-new compact electric SUV in Shanghai, aiming for a price point below the $37,000 Model 3. The vehicle features a lighter frame, single motor, and a smaller battery pack to significantly reduce production costs. The new model is designed to bridge the gap between traditional driving and full autonomy, and still retain a steering wheel for markets not yet ready for driverless tech. This development represents a significant shift from CEO Elon Musk's previous mandate to focus on the company's Robotaxi program and the fully autonomous Cybercab.