Elon Musk-led Tesla Inc. (NASDAQ:TSLA) is reportedly planning on developing and introducing an affordable, compact electric vehicle in its lineup.

New Affordable Tesla?

The EV giant is reportedly in talks with its suppliers to source materials for the EV, which could be about 14 feet in length, significantly smaller than the Model Y, Reuters reported on Thursday, citing anonymous sources.

The report also said that the compact SUV would be produced in China and Musk also plans to introduce it in the U.S. and Europe.

Tesla did not immediately respond to Benzinga‘s request for comment.

The newer model would be priced lower than the Model 3, and may use a smaller battery pack while also being lighter, all of which could help the company price the SUV competitively. It’s worth noting that Tesla had reportedly scrapped plans to develop an affordable EV earlier to focus on robotics and self-driving.

While still in developmental stages, the product could mark Tesla’s focus on human-driven vehicles again, as the sources cited in the report said the company anticipates slower adoption of self-driving vehicles across several countries in the world. There is no set timeline for the product’s production.

2 New Tesla Models?

The news comes as there is considerable buzz surrounding a