Tesla might be working on its most affordable electric vehicle to date, featuring an SUV design and significant cost reductions.

      It may be available in both driverless and human-operated versions.

      Tesla recently stopped production of the Model S and X electric vehicles, leaving only the Model 3 and Cybertruck in its lineup. However, reports from Reuters suggest that the company might be working on a new budget-friendly vehicle, potentially a small SUV. Notably, in March, Musk hinted that “something much cooler than a minivan” is on the way, though it remains unclear whether this is a personal vehicle or something akin to the Cybercab.

      So, what is Tesla planning?

      According to Reuters, the automaker has reached out to suppliers in recent weeks to discuss the details of a compact SUV, which would be a new model rather than a variation of the existing Model 3 or Y. This news comes at an intriguing time, as Tesla recently abandoned plans for a low-cost electric vehicle, with Musk indicating a shift in focus towards its robotaxi and humanoid robot initiatives.

      The new vehicle is expected to be "significantly" shorter than the Model Y, measuring 14.04 feet long. Small SUVs are extremely popular, particularly in key electric vehicle markets like China, where brands such as BYD, Geely, Zeekr, and Xiaomi are heavily investing in electric SUVs that compete with Tesla's options in terms of style and features. Tesla is rumored to begin production of this new model in China, but it might later expand to factories in the US and Europe.

      Will it actually be more affordable?

      As per the Reuters report, the anticipated vehicle could have “a substantially lower price than its entry-level Model 3 sedan,” which starts at $36,990 in the US for the basic RWD trim. It might come with a smaller battery pack to reduce costs, potentially resulting in a range of around 300 miles or less. The vehicle may also utilize a single motor, and notably, it could be available in both driverless and human-driven variants.

      It appears that Tesla is aiming to regain its position in the electric vehicle market as competitors like BYD and Geely continue to lower prices while advancing in critical areas like charging speeds and range. After losing its title to BYD as the world’s largest automaker, Tesla managed to reclaim the top spot by the end of the first quarter in 2026. Now, the company seems poised to take bold steps to outprice its competitors.

      Nadeem is the Managing Editor at Digital Trends.

      China’s latest electric vehicle marvel is priced at $13,000, boasts a 314-mile range, and offers a rapid battery swap.

      With a cost of $13,000, a range of 314 miles, and a remarkably fast battery exchange, the Aion RT Super demonstrates that Western electric vehicles still have some catching up to do.

      While global discourse centers on charging durations, a Chinese manufacturer has introduced an electric sedan allowing for a complete battery swap quicker than most can brew a satisfactory cup of coffee.

      GAC Aion officially presented the RT Super on April 8, 2026 (via CarNewsChina), a mid-size sedan priced at approximately $13,000, which is part of the company's battery rental or subscription model. Essentially, buyers pay for the car itself upfront and lease the battery separately for about $58 each month.

      Skoda’s bike bell will interrupt your noise-canceling headphones, and ideally, ensure your safety.

      A century-old design has received a significant upgrade to enhance its sound, making your noise-canceling headphones no longer a valid excuse for not hearing it.

      Skoda has introduced the DuoBell, a fully mechanical bike bell designed to penetrate active noise-canceling (ANC) headphones. The automaker collaborated with acoustics researchers from the University of Salford to reinvent the bicycle bell and tackle a growing urban issue: pedestrians isolated in their ANC environments who fail to hear traditional bells.

      China’s Geely presents EV charging technology that achieves 10-97% in under 9 minutes.

      Lynk & Co's new 900V battery and rapid charging technology surpass BYD in charging speeds, although real-world usage and the scale of the charging network will ultimately prove pivotal.

      Just a month after BYD set a benchmark for electric vehicle rapid charging with its new Blade Battery 2.0 and quick charging system, Geely has already elevated the standard. The company's Lynk & Co brand has announced its new 900V Energee Golden Brick Battery, which delivers even faster charging times. Geely is making headway in charging speeds.