Tesla CEO Elon Musk believes both cars would end up selling for more, with the small SUV, dubbed the Model Y, expected to price around $45,000 and the Model 3 around $41,000, because buyers would be interested in adding optional features to their cars, Autocar said.
The Model Y would be unveiled "sometime next year," the magazine said, with production slated for later in the year. It is likely to have the same top-hinged doors as the full-size Model X, it said.
Tesla in July published a blog post (https://www.tesla.com/blog/master-plan-part-deux)outlining goals for the company, mentioning a "future compact SUV" as well as a "new kind of pickup truck" as part of Tesla's plan to address "most of the consumer market."
The post also mentions plans for electric heavy trucks and buses that would be unveiled this year.
Small SUVs are among the most sought-after vehicle bodies in the U.S., with virtually all car makers offering at least one small SUV in their lineup. Experts believe compact SUVs, which cost less and consume less fuel than a full-size SUV while giving drivers the same feel, are behind record car sales for SUVs and cars in general.
Tesla last month reported mixed fourth-quarter results, rolling out a wider-than-expected adjusted loss and better-than-anticipated sales, but Wall Street zeroed in on news the Model 3 was on track for volume production this year.