Tesla is moving ahead with a new compact electric SUV called the “NV9.” The move brings Tesla back to its plan to build a low-cost car, after Elon Musk earlier decided to pause it and focus on creating a Robotaxi instead.
According a report from Reuters, this vehicle is being built from the ground up. It is not a version of the Model 3 or Model Y. The NV9 is expected to be Tesla’s promised $25,000 car, a key piece for reaching more drivers as competition from lower-cost Chinese brands grows rapidly.
The NV9 will be smaller and cheaper than the Model 3. Early data points to a length of about 4.28 meters, which makes it roughly 1.5 feet shorter than the Model Y. Tesla aims to make the vehicle lighter and more efficient, which helps meet its price target. The design focuses on a four-passenger setup and a total weight around 1.5 metric tons, well under the two tons of the Model Y.
It will start as a single-motor version with a smaller battery pack. Range will be shorter than Tesla’s larger cars but still fit for city and suburban driving. Engineers are trying to keep it simple while still providing enough performance and comfort to appeal to buyers moving from gas cars to EVs.
Building it differently
Tesla’s “unboxed” manufacturing process is key to making the NV9 profitable. The approach breaks car assembly into separate modules that are built in parallel and later joined together in one main step. This method needs less factory space, about 40% less, according to internal estimates, and can cut down build time.
By producing sections of the car at the same time instead of in one long line, Tesla hopes to lower costs and speed up production once it scales. The company expects this process to become a standard for future Tesla models as well.
This project is a clear shift from Tesla’s 2024 direction. Back then, Musk said he would halt work on the $25,000 car to concentrate on the “Cybercab,” a fully driverless Robotaxi. He called human-driven entry-level EVs “pointless.”
Plans have since changed. The NV9 is being built on a flexible platform that can work both ways, with a steering wheel for regular drivers or without one for full autonomy. This two-track plan keeps Tesla ready for countries that don’t yet allow self-driving cars, while still supporting the Robotaxi future Musk envisions.
Where it will be built
Production will start at Giga Shanghai, Tesla’s main global export hub. Once that line runs smoothly, the company is expected to expand manufacturing to Giga Texas and Giga Berlin.
A firm timeline has not been announced, but analysts expect production to begin late 2026 or early 2027. This timing would help Tesla meet its goal of growing output quickly before the end of the decade.
Tesla’s renewed focus on an affordable model comes as lower-cost Chinese EV makers are gaining ground quickly. Brands like BYD have been releasing cars selling between $10,000 and $20,000 across several regions. For Tesla to reach its goal of 20 million annual deliveries before 2030, a larger-volume entry-level vehicle has become essential.
The idea of Tesla returning to the mass-market space has given new hope for stronger sales growth after a slower year in 2025. The NV9, if delivered on time, could help Tesla stay competitive in markets where affordability now drives most electric car demand.
Tesla has not yet issued an official statement on the Reuters report.
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