Tesla Model 2 Plans Reportedly Back on Track After Abrupt Cancellation 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. 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. 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,