Tesla China has refuted a report from Reuters that indicated the automaker is working on a new, compact electric SUV. This statement came shortly after the original report, which relied on four anonymous sources, claimed the vehicle would be smaller and more affordable than the current models.
Tesla’s Denial of New Compact SUV Development
The denial was first reported by Cailian Press, a prominent financial news outlet in China. According to Tesla China, “market information claiming that Tesla is developing a new, smaller, and cheaper electric SUV is inaccurate.”
Details from the Initial Report
The Reuters article described an all-new electric SUV with an estimated length of 4.28 meters. In comparison, the popular Model Y measures around 4.79 meters. Other details from the report included:
- Smaller battery and single electric motor
- Estimated weight of approximately 1.5 metric tons
- Projected price significantly below the Model 3’s $34,000 starting price in China
- Plans to manufacture the vehicle initially at Tesla’s Shanghai facility, with potential expansion to the US and Europe
- Project status: early development, with no production expected this year
Tesla’s History of Denials
Tesla has a notable history of denying reports that later turned out to be true. A case in point is the cancellation of the affordable electric car project, codenamed NV9. Initially, CEO Elon Musk dismissed Reuters’ claims, only to later confirm the project’s demise when resources were shifted to the Robotaxi initiative.
Additionally, in December 2024, Tesla China denied rumors about bringing the Cybertruck to the Chinese market, only to later confirm its progress through regulatory channels. Most of the high-profile denials have typically originated from Musk himself rather than from the company’s Chinese operations.
The Need for Skepticism
This latest denial from Tesla China deserves scrutiny. While skepticism is appropriate, it is essential to recognize that Reuters’ reporting has generally proven more accurate than not. With four independent sources backing the initial claim, many believe there may be merit to the reported plans for a compact SUV.
As the automotive industry evolves, the situation remains fluid. Observers are keen to see how trends in electric vehicles influence Tesla’s product strategy in the coming months.
