As it prepares to phase out the Model S and Model X this month, Tesla may be looking to add a vehicle back to the lineup: a compact SUV, according to reports.
Tesla CEO Elon Musk has spoken often about the need for the automaker to add to its lineup. The second-generation roadster is late to arrive and, compounding the issue, doesn’t have an updated date for its debut.
The Cybertruck has fallen short of expectations, plagued by a series of problems right out of the gate. Then after a trip to Germany to visit Tesla’s operations there, he noted the company needed a small hatchback to better navigate cities with their narrower streets highlighting the need for agility.
However, the company’s real mainstream vehicles, the Model 3 compact sedan and Model Y, the bestselling vehicle on the plant for much of the past two years, have carried the company. However, the departures of the high-end models in Tesla’s lineup leave a hole that could amply be filled by a new compact crossover.
The company’s been talking with its suppliers, according to a Reuters report, about the plans for this new vehicle. The move suggests it’s not going to share a platform with the Model Y or Model 3. Reuters says the new vehicle would be built in China, which could be problematic for the company in the U.S. market.
The current tariff rates set by the Trump administration would significantly raise the price of what should be a sub-$30,000 electric vehicle – something the market desperately needs right now. Tesla would use a smaller, less expensive battery to help reduce costs, which could mean a range of less than 300 miles.
Reuters says its sources say the new model would also be capable of full autonomy so the design would allow it to be produced with and without driving controls. The company says it plans to begin production of its Cybercab robotaxi later this month. It’s unclear if those vehicles would be built without driver controls. It’s also not certain if they’ll be used exclusively by Tesla for a robotaxi fleet or if the company intends to sell them to other fleet operators.
[Images: Tesla]
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