On April 9, sources close to the matter revealed that Tesla is in the process of developing an all-new compact electric SUV, designed to be smaller and more budget-friendly. Recently, Tesla has initiated discussions with suppliers to outline detailed plans for this upcoming vehicle. Reports indicate that this car will not be a mere update of the existing Model 3 or Model Y but will represent an entirely new model. This compact SUV is set to initially roll off the production lines in China, with intentions to later expand its availability to the U.S. and European markets. Measuring 4.28 meters in length, it is notably shorter than Tesla's best-selling Model Y, which stands at approximately 4.8 meters. Previously, Musk made the decision to put the low-cost electric vehicle project on hold, shifting focus instead towards the robotaxi and humanoid robot sectors. The announcement of this compact SUV has raised questions about Tesla's strategic direction: Is the company reverting to producing mass-market, human-driven electric vehicles, or is it inching closer to realizing a fully autonomous driving future? According to sources and Tesla employees, this new model might strike a balance between the two. While the employee refrained from confirming specific details about the model, they emphasized that Tesla's current objective is to develop vehicles that are capable of autonomous driving while still providing the option for manual control.