Tesla Developing a New Low-Cost Crossover: First Details Emerge

Tesla is reportedly planning a smaller, cheaper electric crossover that could undercut the Model 3.

April 10, 2026 at 11:03 AM / News

Tesla is working on an all-new compact and affordable electric crossover, according to a report from Reuters citing four sources familiar with the matter.

People briefed on the discussions say Tesla recently contacted suppliers to talk through early details of the project. According to those sources, the vehicle will be an entirely new model rather than a variation of the existing Tesla Model 3 or Model Y.

The insiders also said the upcoming crossover is expected to be built in China. At the same time, one source noted that Tesla is looking to expand production capacity in both the United States and Europe.

The new model is expected to measure about 168.5 inches in length. For comparison, the Tesla Model Y—the brand’s current smallest crossover—comes in at roughly 187 inches long.

Reuters also noted that back in 2024 Tesla CEO Elon Musk said the company would increasingly focus on autonomous robotaxis and humanoid robots. One source told the outlet the new crossover could potentially be offered either as a fully autonomous vehicle or in a conventional driver-controlled version.

Sources also said the upcoming model should cost significantly less than the Tesla Model 3, which starts at about $34,000 in the U.S. Tesla is reportedly exploring ways to cut costs, including using a smaller battery pack, which would likely result in a shorter driving range.

Another person familiar with the plans added that the crossover will probably use a single electric motor and be lighter than Tesla’s current models. The vehicle’s curb weight could come in at around 3,300 pounds. However, sources caution that production is unlikely to begin as soon as 2026.

You may also be interested in the news:

The Batmobile Without Batman: The Court Case That Changed How Fictional Cars Are Protected
British Military Could Replace Long-Serving Land Rovers With Chevrolet Trucks
Ford Reveals New Bronco Amazon Edition With 36-Inch Water Fording Capability
Kia Boys Hit Two Cars Overnight, Steal One Vehicle and Trash Another in Pennsylvania
Coca-Cola and WD-40 Can Help Protect Chrome Trim From Rust on Classic Cars
BMW Introduces New Ignition Technology for 2026 M2, M3, and M4
The Rotary Engine Puzzle: Why Wankel Motors Never Replaced Traditional Piston Engines
Stellantis Unveils New FaSTLAne 2030 Strategy With $68 Billion Investment and Four New Opel Models