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Tesla’s New Budget SUV Enters Development Phase

Tesla plans smaller cheaper SUV despite bearish retail investor sentiment

  • Tesla Inc. (TSLA) is reportedly developing a new, smaller, and cheaper electric vehicle, targeting the compact SUV market.
  • The company has recently engaged with suppliers to discuss the manufacturing process and specifications for the vehicle’s components.
  • Despite the news, retail sentiment on Stocktwits about the company was trending ‘bearish’ at the time of writing, even as TSLA was the platform’s top-trending ticker.

Electric vehicle pioneer Tesla Inc. is making strategic moves to capture a broader market segment, having recently initiated discussions with suppliers for a new and more affordable compact SUV, according to a report citing people familiar with the matter. The discussions, which have taken place over the past few weeks, focused on the manufacturing process and detailed component specifications for what could be a major new product line for the automaker.

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This potential vehicle is said to be priced substantially lower than the Model 3 sedan, representing a significant push into a more accessible price point. Consequently, this move could open up the brand to a new wave of consumers who have been priced out of the current Tesla lineup.

Meanwhile, investor reaction in pre-market trading on Thursday was muted, with Tesla shares edging up just 0.1%. Retail trader sentiment on the Stocktwits platform, however, trended in a ‘bearish’ territory at the time of writing, indicating skepticism despite the significant product news.

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