Tesla is reportedly developing a low-cost, sub‑Model 3/Model Y electric car that would be compact and likely produced in China, according to sources speaking to Reuters.
Analysts and investors say the cheaper model could help address slowing demand but would risk compressing profit margins; an analyst told Reuters, "Demand, not supply, is the bottleneck." Tesla also built over 50,000 more vehicles than it delivered in the first quarter of 2026, highlighting possible demand weakness.
Reuters sources describe the car as about 14 feet long, roughly the size of a 2027 Chevy Bolt, and say Tesla plans cost savings from a smaller battery and a single electric drive motor; pricing has not been disclosed and it would sit below the current cheapest Model 3 Rear‑Wheel Drive.
This report is based on information originally published by Jalopnik.
Read the full article at Jalopnik.
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