Tesla China has denied a report that the company is developing a new, smaller SUV model to be produced at its Shanghai factory. The vehicle, which would be more than 18 inches shorter in length than Tesla’s current Model Y SUV, is expected to be cheaper than the Model Y, which currently has an MSRP of $39,990 for the lowest-tier model. The news has caused Tesla's stock to fluctuate, with shares dipping as low as $345.59 shortly after the opening bell. The company's stock has fallen 4.5% over five days, 13.28% over the past month, and more than 16% over six months. However, analysts have warned that Tesla's large cash burn potential comes with significant investments tied to the Tera GW capacity, the TSLA, and Optimus Robotaxi.