Business Technology

Tesla developing smaller, cheaper electric SUV

Tesla developing smaller, cheaper electric SUV

The project is in its early stages, with Tesla reportedly contacting suppliers in recent weeks to discuss production plans at its Shanghai factory.

The move comes as the company faces increasing competition from lower-cost Chinese EV manufacturers and a slumping stock price.

While CEO Elon Musk has recently focused on robotics and self-driving technology, the development of a 'Model 2' style SUV suggests a renewed effort to capture the entry-level market.

Industry analysts believe a successful launch of a cheaper model is crucial for Tesla to maintain its global market share and meet its ambitious sales targets.