tesla model 2 plans reportedly back on track after abrupt cancellation, Speculative render created using Nano Banana Speculative render created using Nano Banana Tesla is reengaging with plans to enter the affordable EV space with a smaller, more accessible SUV. According to a new report citing multiple sources familiar with the matter, Tesla is in the early stages of developing a compact electric crossover that would sit below the Model Y in size and price. According to Reuters, the project has not been officially confirmed yet, with Tesla declining to comment on the report. The proposed SUV will be an all-new vehicle, not a repackaged version of the Model 3 or Model Y. The sources claim the new vehicle will be about 14 feet in length, which is nearly two feet shorter than the Model Y. 2027 Subaru Getaway: All The Details tesla model 2 plans reportedly back on track after abrupt cancellation The report claims Tesla has already begun discussions with suppliers around component specifications and manufacturing processes. Initial plans reportedly call for production in China, likely at Tesla's Shanghai facility, with plans for potential expansion to its North America and European facilities later. The goal, according to sources, is to offer a vehicle priced well below the Model 3, which currently starts in the mid-$30,000 range in key markets. Tesla is expected to make a few key changes to the new model's hardware compared to its current lineup. Look for a smaller battery pack, resulting in reduced driving range, and a single-motor setup is likely instead of dual motors. That should make for an overall lighter vehicle, with the report calling out a target of roughly 1.5 metric tons, compared to about two tons for the Model Y. tesla model 2 plans reportedly back on track after abrupt cancellation AutoGuide's Take: The sources caution that Tesla's new project is still in its early stages-the automaker has a history of delaying or canceling vehicles after initial development. In fact, this project has already been cancelled once before. In 2024, CEO Elon Musk shelved plans for a $25,000 mass-market EV-referred to as the "Model 2"-instead, he pivoted hard toward autonomous vehicles, including the upcoming Cybercab robotaxi. This may have been due to his formerly close relationship with the sitting Trump administration, which has been working to deregulate autonomous vehicle regulations. This new compact SUV looks like a return to Tesla's original mission of building affordable EVs for human drivers. The insiders do claim that future Tesla models could be designed with dual-purpose capability, allowing for both traditional driving and autonomous operation-not every jurisdiction across the globe will offer the same degree of regulatory freedom to autonomous vehicles as America. As it stands, production is unlikely to begin before 2027, if the program moves forward at all. Tesla's core business still depends heavily on its existing EV lineup, even as it pushes toward a future centered on autonomy and robotics. 2026 Porsche 911 Turbo S Cabriolet: All the Details