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Tesla May Introduce Compact Car or Hatchback

Tesla Model Y

Tesla CEO Elon Musk has teased the possibility of a compact model or a hatchback, in a big departure from Tesla’s standard designs.

Tesla has largely been known for sedans, as well as one SUV and its upcoming Cybertruck. While larger cars are the norm in the US, smaller cars are favored in Europe. Speaking to a European conference on batteries that was hosted by Germany, Musk recounted struggling to find a parking spot in Berlin when driving a Model X.

“I was driving a Model X around Berlin and we had quite a bit of trouble finding a parking space where we could fit,” he said, according to Reuters.

As a result, Musk has said a compact or hatchback style car makes sense for the European market.

“Possibly in Europe it would make sense to do, I guess, a compact car, perhaps a hatchback or something like that,” said Musk.

Should Tesla move forward with a compact design, given the success of the Civic and Corolla, it’s a safe bet it would be popular in the US as well.