Tesla may be working on a smaller and cheaper electric SUV

Reuters reports Tesla is developing a smaller, lower-cost electric SUV separate from the Model 3 and Model Y.

The new vehicle is said to be about 14 feet long, suggesting a more affordable model aimed at a broader EV market.

Tesla has also been weighing a driverless option after shifting away from plans for a $25,000 EV and toward robotaxis.

The move could help Tesla expand beyond premium buyers while signaling another reset in its product and autonomy strategy.