Reuters has exclusively learned that Tesla is quietly developing an all-new compact SUV, codenamed NV91 or NV93. This vehicle is the same project that Elon Musk has previously mentioned as the "$25,000 electric car," which was canceled in early 2024 but appears to have been quietly revived.
Vehicle Specifications and Cost Advantage
The new SUV measures just 4.28 meters in length, half a meter shorter than the current Model Y (4.78m). It is built on an entirely new architecture, not a refresh of Model 3 or Model Y. Tesla's internal target is at least 20% lower production cost compared to the refreshed Model Y, making it a crucial tool for entering the mass market.
Affordable EV Plan Reverses
In February 2024, Musk abruptly canceled the affordable EV plan to focus resources on Robotaxi (Cybercab) and humanoid robot Optimus. However, Reuters sources indicate that Tesla has recently contacted multiple suppliers to discuss details. The project is now in the validation testing phase, with mass production targeted as early as mid-2026, though it could be delayed.
A Tesla employee revealed that the vehicle is internally positioned as "autonomous-ready but with manual driving options," meaning it is not simply a budget commuter car but paves the way for the autonomous driving ecosystem. This fills the price gap below the Cybercab (around $30,000) and helps Tesla regain a foothold in the mass market.
China First, Then US and Europe
Production is planned in three phases: first at Tesla's China factory, then expanding to the US and Europe. The Chinese electric vehicle market is fiercely competitive, with local brands like BYD pressuring Tesla in the lower price range. Tesla's Q1 2026 deliveries remain under pressure, and Morgan Stanley has cut its price target to $145. Meanwhile, the Cybercab is gearing up for production at the Texas Gigafactory, and Musk claimed at Davos that Robotaxi will be "widely available in the US by the end of 2026."
The biggest question remains: is Tesla pursuing affordable cars or autonomous driving? According to Reuters sources, this new SUV is designed to serve both goals — serving as a transitional product before the autonomous Cybercab goes into volume production, while also stabilizing the company's sales.