# Tesla is developing a smaller cheaper compact electric SUV, likely built in Shanghai then US and Europe, aiming below Model 3 price and designed for future driverless use.

*business · news · 2026-04-10 · CNBC TV18*

## Key points

- Tesla is developing a new compact electric SUV, distinct from the Model 3 or Y.
- The new SUV will be about 4.28 meters long and produced first in Shanghai.
- Tesla aims to price the SUV below the Model 3, using a smaller battery and single motor.
- The vehicle is designed for future driverless use but will retain human driving controls.
- Production has not been greenlit and is unlikely to begin before 2025.

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

[Read the full story on CNBC TV18](https://www.cnbctv18.com/auto/tesla-is-developing-a-new-smaller-cheaper-ev-says-report-ws-l-19884400.htm)

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