# Tesla is reportedly developing an all-new, compact electric SUV that would be smaller and significantly cheaper than its current entry-level models.

*business · news · 2026-04-10 · NDTV.com*

## Key points

- Tesla is developing a new compact electric SUV smaller and cheaper than current entry-level models.
- The new SUV will be about 4.28 metres long and weigh around 1.5 metric tonnes.
- It will use a smaller battery and single motor, resulting in lower range and cost than Model Y.
- Production is planned to start at Tesla's Shanghai Gigafactory, with possible expansion to the US and Europe.

**Companies:** Tesla
**Countries:** United States, China, Germany

[Read the full story on NDTV.com](https://www.ndtv.com/auto/tesla-working-on-new-smaller-cheaper-electric-vehicle-report-11339399)

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