Well, that didn’t take long.
Tesla China denied a report this week that said the electric vehicle company is developing a new, smaller SUV model to be produced at its Shanghai factory. Tesla China says “market information claiming that Tesla is developing a new, smaller, and cheaper electric SUV is inaccurate,” Electrek reported, citing the Chinese financial wire Cailian Press.
On Thursday, April 9, Reuters reported that Tesla is developing a new electric SUV and has contacted suppliers about manufacturing logistics and specifications for various components.
The vehicle was supposed to be more than 18 inches shorter in length than Tesla’s current Model Y SUV (14 ft vs 15.7 ft) and was to be cheaper than the Model Y, which currently has an MSRP of $39,990 for the lowest-tier model.
The vehicle would be produced in China, according to four Reuters sources familiar with the discussions, with future plans to expand production to the U.S. and Europe. Tesla’s Shanghai factory, which exports to Europe and other markets, saw production rise by nearly 9% year over year to 85,670 in the first quarter.
Either Reuters sources were wrong, or Tesla wasn’t ready for this information to become public, because the company has denied the report.
The denial has Tesla’s stock going on a rollercoaster ride Friday morning, April 10, with shares dipping as low as $345.59 shortly after the opening bell, though the stock was up 0.14% to $346.06 at last check.
Investors may have been keen on a new model after the company shared it was mothballing its Model S and Model X due to a lack of demand. The Model 3 was the smaller, cheaper version of the Model S, and its widespread adoption after its July 2017 debut helped propel Tesla deliveries (and shares) to the levels they enjoy now.
Tesla’s stock has fallen 4.5% over the past five days, 13.28% over the past month, and more than 16% over the past six months. Year to date, shares are down nearly 21%.
When Tesla confirmed it was ending production of the Model 3 and Model X, it said it would refocus its…
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