Tesla may be shifting strategy once again. Reuters reported that the company is working on a smaller and less expensive electric SUV. This would be a brand new vehicle rather than a variant of the existing Model 3 or Model Y, according to the publication's sources. The new EV would allegedly be about 14 feet long, shorter than the 15.7-foot Model Y. Reuters didn't have details about whether this would be an autonomous vehicle or a traditional one, but one source reportedly said that Tesla is generally looking to offer a driverless option in its vehicle lineup. 

The company had previously been working on a budget EV with a target price of $25,000, but Tesla appeared to abandon that effort in 2024 to work on robotaxis. And as recently as the start of 2026, Tesla discontinued two of its EV models in order to refocus the business on robotics. Perhaps the brand felt it needed to have a bigger auto imprint after cutting the Model S and X and relaunched the budget EV project. Or perhaps this is just the latest whim of the company's leadership and it won't actually come to pass. We'll have to wait and see.

This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/tesla-may-be-working-on-a-smaller-and-cheaper-electric-suv-175230630.html?src=rss

©

If you live in Los Angeles, you may soon be able to hail a Volkswagen ID. Buzz robotaxi from the Uber app. The companies' previously announced "multi-year strategic partnership" is nearing a public launch, with on-road testing with a safety driver underway.

The vehicles use tech from MOIA America, the US wing of Volkswagen's self-driving subsidiary. Uber and MOIA plan to deploy thousands of ID. Buzz vehicles across the US over the next decade. LA is the pilot city, and if all goes well, it will spread to "multiple US markets." The companies say they're still on track for rides (with safety drivers) in LA in late 2026.

Uber / MOIA

The ID. Buzz is Volkswagen's modern take on the automaker's classic "hippie van" microbus. The head-turning EV has minivan-style sliding doors and seats up to seven people, making it a logical fit for larger groups hailing an Uber. The vehicle has a per-charge range of up to 234 miles.

After selling its in-house self-driving unit in 2020, Uber pivoted to a new strategy of partnering with multiple AV companies. It currently offers autonomous rides in the US with Waymo (Phoenix, Austin and Atlanta) and Avride (Dallas). Overseas, it has live service with WeRide in Abu Dhabi, Dubai and Saudi Arabia. Uber has a long list of other partners lined up for future services, including (among others) Rivian, NVIDIA and Zoox, the latter of which also plans to debut van rides in LA within the next year.

Correction, April 8 2026, 8:50AM ET: A previous version stated that driverless rides would be available in 2026; AVs are planned to be on LA streets in 2026, but with human safety drivers. Engadget regrets the error.

This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/uber-begins-testing-its-volkswagen-id-buzz-robotaxi-fleet-in-la-120000762.html?src=rss

©