Elon Musk Is Reviving His 2006 ‘Master Plan’—If This Secret Tesla Project Launches

Tesla has been shifting towards autonomous vehicles and robots. But there’s a glimmer of hope for people who want a more affordable EV.

BY CHLOE AIELLO, REPORTER @CHLOBO_ILO

Tesla may finally be making good on a pledge to build a cheaper EV. Although it isn’t clear how this rumored model will dovetail with Tesla’s current strategy, a less expensive car could serve the dual purpose of meeting mass-market human needs and fueling autonomy.

According to a report from Reuters, the EV maker has had conversations with suppliers about manufacturing and specs for components of a compact SUV. It is expected to be a new design, rather than a modification of existing models, and be about two feet shorter than the popular Model Y SUV. The vehicle will reportedly be produced in China first, before expanding to the U.S. and E.U., Reuters reported.

Although Tesla has not confirmed the report, if true, the novel vehicle would be among the first new vehicle models the carmaker has released since the Cybertruck hit the market in 2023. Tesla also announced in February that it had produced its first Cybercab, an autonomous vehicle (designed to lack a steering wheel or pedals) that could be used for a ride-hailing robotaxi service or even for everyday people, The Wall Street Journal reported.

A product refresh would be welcomed by experts who have criticised the EV maker for an aging product line as EV competition has ramped up from legacy automakers like Ford and GM, as well as from Chinese automaker BYD.

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The report also follows a decision CEO Elon Musk made in 2024 to scrap production of an affordable, $25,000 Tesla in order to prioritize production of autonomous robotaxis and a faster, more expensive Roadster. Although Musk has made a name for himself for over-promising and under-delivering—particularly on deadlines—he did post an update about the Roadster to the social media platform he owns, X, last month. “New Roadster unveil hopefully next month. It will be a banger next-level,” he wrote. 

That follows a November announcement in which he pledged a demo of the Roadster on April 1, which has since passed, and comes some eight years after he initially teased the project.

The decision in 2024 to pivot away from an affordable model came as a shock. Tesla’s strategy since Musk announced his 2006 Master Plan had been to start with more premium, expensive models and reinvest to build increasingly more affordable vehicles.

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