Tesla is working on a new, smaller electric SUV that will cost less than its current cars. This project comes at a time when Tesla’s usual electric car business is facing slower growth and more competition. The company is also focusing on robotaxi and robot projects.

The planned car will be a new model, not a smaller version of the Model 3 or Model Y. Tesla has started talking with suppliers about the best ways to make the car and about important parts, which shows the early planning stage.

The new SUV is expected to be shorter than the Model Y and have a lower price than the Model 3. It may use a smaller battery and be lighter, with only one motor. The car may also be built for both self-driving and human use, but the project is still in early development and has not been approved for production yet.