# Reports out of the US are pointing to an all-new, more affordable Tesla compact SUV entering the early stages of formal pre-production.

*fintech · news · 2026-04-13 · The Canberra Times*

## Key points

- Tesla is developing a new compact SUV, distinct from the Model 3 or Y.
- The new SUV will be produced first in Shanghai, with later expansion to the US and Europe.
- The vehicle will be 4280mm long, significantly shorter than the Model Y.
- Tesla now plans to offer both driverless and human-driven options for new models.
- Production of the new compact SUV is unlikely to begin before 2025.

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

[Read the full story on The Canberra Times](https://www.canberratimes.com.au/story/9221931/cheap-new-tesla-electric-suv-is-back-on/)

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