April 9, 2026
From robo-dreams to mini-car memes
Tesla reportedly developing new smaller, cheaper EV after killing Model 2
Tesla’s “cheap mini SUV” rumor drops; fans cry “vaporware”
TLDR: Tesla is reportedly working on a smaller, cheaper SUV in Shanghai after shelving its $25k car, hinting at a return to human-driven models. The crowd is split between “vaporware” skeptics and disillusioned ex-fans worried about price and safety, with only a few hoping this time the cheap Tesla actually arrives.
Two years after Elon Musk axed Tesla’s affordable car and declared human-driven vehicles “pointless,” a new report says Tesla is cooking up a smaller, cheaper SUV—built in Shanghai, shorter than the Model Y, with a single motor and a smaller battery. It’s early days and 2026 production is a long shot, but the rumor alone has the internet turning the headlights on high. Reuters via Yahoo Finance says it could undercut the Model 3’s $34k China price.
The comments? Pure fireworks. One camp screams “vaporware” and points to Tesla’s long list of delayed promises (hello, Roadster). Others call it a stock-saving rumor, noting it’s barely cheaper than a Model 3 and accusing Tesla of chasing robotaxi dreams while sales slip. Former fans are weighing in with heartbreak: the brand used to mean cutting-edge; now, some say it signals Musk/DOGE fandom and “cars aren’t the future” vibes. At least there’s praise for opening the Supercharger network—one user flexed that mom’s Cadillac can juice up just fine.
Safety hawks are loud too. They slam the big touchscreen and “sorta-there” driver assist, arguing Tesla forgot that cars are heavy machines that can hurt people. The lone optimists hope this tiny Tesla comes with a human-driven option and a price that actually feels “affordable.” Until then, the memes write themselves: Robotaxi who? “Wake me when it ships.”
Key Points
- •Reuters reports Tesla is developing a new compact, lower-cost electric SUV, described as an entirely new vehicle, not a Model 3/Model Y variant.
- •The vehicle is about 4.28 m long, ~1.5 tons, with a smaller battery and single motor, implying less range than a Model Y.
- •Three of four Reuters sources say initial production would be in Shanghai; future expansion to the US and Europe is targeted.
- •Pricing is expected to undercut the Model 3’s starting prices in China (~$34,000) and the US (~$37,000); production is not green-lit and is unlikely to begin in 2026.
- •The report follows Tesla’s 2024 cancellation of a $25,000 EV (NV9) in favor of Robotaxi plans; Tesla deliveries have declined and its Austin Robotaxi remains small-scale with incidents reported to NHTSA.