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Tesla is developing a new smaller, cheaper electric SUV

The automaker has contacted suppliers in recent weeks to discuss details of the plan for the compact SUV, which would be a new vehicle and not a variant of Tesla’s current Model 3 or Y

Reuters
Reuters

09 April, 2026

Tesla is developing a new smaller, cheaper electric SUV

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Article Summary
Tesla are reportedly developing a smaller, cheaper electric SUV, potentially produced in China, the US and Europe. The compact SUV, shorter than the Model Y, could signal a shift back to mass-market EVs, or align with their autonomous vehicle vision. Despite robotaxi focus, Tesla recognises the need for human-driven options due to regulatory hurdles.

Tesla is developing an all-new smaller, cheaper electric SUV, four people familiar with the matter told Reuters.

The automaker has contacted suppliers in recent weeks to discuss details of the plan for the compact SUV, which would be a new vehicle and not a variant of Tesla’s current Model 3 or Y, the people said. The conversations involved the manufacturing process and specifications for various components, they said.

Three of the people said the compact SUV would be produced in China, and one said Tesla also aims to expand production to the US and Europe. The car would be 4.28 metres in length, or about 14 feet, two of the sources said. That’s significantly shorter than Tesla’s top-selling Model Y SUV, which is about 15.7 feet long.

The effort follows a decision by chief executive Elon Musk to scrap a highly anticipated low-cost EV project in 2024 and pivot the company to focus on robotaxis and humanoid robots. A key question is whether this latest effort to develop a smaller SUV signals a strategy shift back to mass-market human-driven EVs or whether the new model would align more with Tesla’s vision for fully autonomous vehicles.

Read more-Tesla enables free supercharging across UAE, select GCC markets

Such a model could potentially serve both purposes, according to one of the people familiar with the new-vehicle project and a Tesla employee with knowledge of its current product philosophy. The Tesla employee declined to confirm or deny details of any specific vehicle but said, in general, the automaker now aims to build models that would be driverless but offer a human-driven option.

While aiming for full autonomy across its lineup, the person said, Tesla realises many global markets won’t see meaningful adoption, nor regulatory acceptance, of driverless vehicles for years. Preserving the option to build a particular model with or without driving controls could enable more sales and help ensure Tesla can keep its car factories running near capacity, the person said.

As Tesla chases a driverless future, some analysts predict a third-straight year of declining sales for the traditional EVs that provide the vast majority of its revenue. So far, Tesla operates a small number of robotaxis only in Austin, Texas, many with human safety monitors in the passenger seat.

Tesla didn’t respond to requests for comment about plans for a new vehicle.

The four people familiar with the project said it remained in an early development stage. Reuters couldn’t determine whether Tesla has given the green light for the car’s production.

The automaker has a history of starting development on products that end up long delayed or canceled. Tesla showed off concept vehicles for a Roadster supercar and a Semi freight truck in 2017, for instance, but still hasn’t produced the sports car or mass-produced the Semi.

Two of the sources said Tesla aims to offer the new vehicle at a substantially lower price than its entry-level Model 3 sedan, which starts at $34,000 in China and about $37,000 in the US. They said Tesla planned to save costs in part by using a smaller battery, which would mean a shorter driving range compared with 306 to 327 miles for the Model Y.

One of the people added that the automaker would also offer a single electric motor instead of two, a performance option on current Tesla models. Tesla also wants to make the car much lighter, this person said, at about 1.5 metric tonnes compared with about two tons for the Model Y.

Three of the people said the new model would be produced at Tesla’s Shanghai factory. While the timing remained unclear, the car’s production is unlikely to begin this year, the people said.

Tesla’s start-and-stop history on affordable EVs

For years after Tesla started in 2008 producing luxury electric cars, Musk said the company’s real mission was to produce affordable, mass-market electric-vehicles that would be critical to fighting the climate crisis. But start-and-stop efforts to deliver on that goal have so far fallen short.

Beginning in 2020, Musk said Tesla aimed to sell 20 million vehicles annually by the end of the decade, nearly double that of Toyota 7203.T, the current global sales leader. A project Musk touted to produce a $25,000 EV, often called the “Model 2” by Tesla fans and investors, was expected to drive explosive vehicle-sales growth.

Then in 2024, Reuters reported that Tesla had abandoned plans for the Model 2, although it still planned a driverless robotaxi on the same platform. Tesla’s biggest EV rivals in China had already started producing much cheaper EVs. Later that year, Musk said it would be “pointless” and “silly” for Tesla to make a $25,000 EV for human drivers because the company would soon offer driverless vehicles.

A former Tesla manager said an all-new cheaper traditional car would represent a significant departure from the company’s philosophy through mid-2025. Until then, the manager said, Tesla had dropped the effort to mass-produce an entry-level car in favor of robotaxis as the key to lowering costs per mile for riders and the car owners charging them for trips.

After scrapping the Model 2, Musk and other Tesla executives described different plans for new, “more affordable” EVs in vague terms. When the vehicles arrived last fall, however, they were stripped-down versions of the current Model 3 and Y offered in new “standard” trim levels at only a modest discount.

U.S. prices of $36,990 for the Model 3 Standard and $39,990 for the Model Y struck some investors as too high to attract a new class of buyers and haven’t yet made a significant difference in Tesla’s overall sales.

Is the driverless cybercab on track?

Publicly, Musk and Tesla have continued to emphasise plans for robotaxis and humanoid robots, which has been effective in sustaining Tesla’s eye-popping stock-market value.

Tesla’s market capitalization is about $1.3trn, far outpacing its financial fundamentals, even when compared with high-flying tech peers. Investors last year approved a compensation package granting Musk up to $1trn in Tesla stock tied to a series of product and financial goals.

The automaker now says it plans to start production this month of a two-door Cybercab robotaxi, first unveiled as a concept vehicle in 2024, with no pedals or steering wheel. But it remains unclear when the car will go on sale or see use in a Tesla-operated robotaxi fleet. The automaker hasn’t sought a federal exemption required to sell a vehicle with no steering wheel or pedals, a spokesperson for the National Highway Traffic Safety Administration said.

Concierge service: Dubai unveils home delivery for gold and jewellery purchases

The initiative, introduced in collaboration with select retailers, is designed to bring the trusted in-store experience directly to customers, combining convenience with the high standards

Gulf Business
Gulf Business

09 April, 2026

Concierge service: Dubai unveils home delivery for gold and jewellery purchases

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Article Summary
Dubai Gold District has launched a concierge home delivery service for gold and jewellery, addressing rising demand for convenient, private purchasing. Select retailers offer consultations and secure doorstep delivery, blending Dubai's trusted gold market experience with modern flexibility. This initiative complements in-store shopping and reflects evolving consumer needs, ensuring transparency and service remain paramount.

As demand for gold continues to rise across the UAE, Dubai Gold District has unveiled a new concierge-style home delivery service, allowing customers to purchase gold and jewellery through private consultations without leaving their homes.

The initiative, introduced in collaboration with select retailers, is designed to bring the trusted in-store experience directly to customers, combining convenience with the high standards that have long defined Dubai’s gold market.

Read more-Gold prices skyrocket: Time to buy or wait?

Dubai Gold District, often referred to as the “Home of Gold,” brings together some of the world’s most recognised gold and jewellery retailers under one destination. The new service reflects a shift in consumer behaviour, as more buyers seek flexibility, privacy and ease when making high-value purchases.

How the service works

The service has launched with participating retailers Malabar Gold & Diamonds, Kanz and Kalyan Jewellers, with more expected to join in the coming months.

Customers can contact retailers directly to arrange private consultations, during which they can explore options ranging from gold bullion and coins to fine jewellery. Once a selection is made, purchases are securely delivered to the customer’s doorstep, ensuring a discreet and tailored experience.

The move comes at a time when gold continues to attract attention as a reliable store of value, particularly amid global economic uncertainty.

Blending tradition with modern convenience

Dubai has long held a reputation as one of the world’s most trusted destinations for buying gold, supported by transparent pricing, competitive rates and a rich trading heritage.

“With this delivery service, we are extending the trusted Dubai Gold District experience beyond the store,” said Muath AlRais, Senior Operations Manager at Dubai Gold District. “Customers can now purchase gold from the comfort and privacy of their homes, while maintaining the transparency and service that define gold shopping in Dubai.”

Industry players say the initiative reflects a broader effort to modernise the gold-buying journey without compromising on trust.

Retailers respond to changing consumer needs

Retailers participating in the programme say customer expectations are evolving, particularly among those purchasing investment-grade gold or high-value jewellery.

Malabar Gold & Diamonds noted growing demand for more personalised and private shopping experiences.

“We are seeing increasing interest from customers who want greater convenience and privacy, particularly when selecting investment pieces or high-value jewellery,” the retailer said. “Personal consultations and secure home delivery allow us to guide customers through their selection while bringing the same trusted in-store experience directly to their homes.”

Kalyan Jewellers echoed similar sentiments, highlighting the importance of trust and transparency in the buying process.

“Our customers value the transparency and competitiveness of Dubai’s gold market,” the company said. “By offering personalised consultations and secure delivery, we are making it easier for customers to purchase gold while still benefiting from the expertise and guidance they expect.”

Retail experience continues unchanged

Despite the introduction of home delivery, Dubai Gold District and the Dubai Gold Souk will continue to operate during normal business hours, with retailers welcoming customers in-store.

The new service is intended to complement, rather than replace, the traditional shopping experience, giving customers more flexibility in how they choose to engage with the market.

As global gold prices continue to draw interest, the initiative positions Dubai Gold District to meet rising demand while reinforcing its reputation as a leading hub for gold trading.

Dubai rolls out first-of-its-kind virtual asset issuance framework

The framework sets out requirements around governance, ongoing disclosure obligations and the treatment of asset-referenced virtual assets, including rules covering reserve assets, redemption rights and legal structuring

Rajiv Pillai
Rajiv Pillai

09 April, 2026

Dubai rolls out first-of-its-kind virtual asset issuance framework
Image: Getty Images

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Article Summary
VARA has issued Guidance on its Virtual Assets Issuance Rulebook, a world-first regulatory framework governing digital asset creation and distribution. It outlines three issuance pathways, emphasising disclosure and strong governance. Issuers must publish detailed whitepapers. The Guidance clarifies responsibilities for issuers and distributors, reinforcing Dubai's commitment to responsible innovation and market integrity within the virtual asset sector.

Virtual Assets Regulatory Authority has issued new Guidance on its Virtual Assets Issuance Rulebook, establishing what it describes as the world’s first dedicated regulatory framework governing how digital assets are created, disclosed and distributed within a licensed environment.

The Guidance is designed to complement VARA’s existing issuance rulebook by providing market participants with a practical reference on how the regime applies across different types of virtual assets and issuers.

First-of-its-kind issuance framework

The document outlines three distinct issuance pathways: Category 1 Virtual Asset Issuances, which require licensing and apply to fiat-referenced and asset-referenced assets; Category 2 Issuances, which are facilitated through licensed distributors; and Exempt Virtual Assets, which are subject to limited requirements due to their restricted functionality.

Matthew White, chief executive officer of VARA, said: “Clear issuance standards are fundamental to building resilient and transparent Virtual Asset markets. This Guidance provides practical clarity on how VARA’s framework applies across different issuance models, ensuring that innovation is supported by strong governance, robust disclosures, and accountable market practices.”

The Guidance reinforces VARA’s disclosure-led regulatory approach, requiring issuers to publish detailed whitepapers and risk disclosure statements that are clear, accurate and accessible to users. These measures are intended to support informed decision-making and improve transparency across the virtual asset ecosystem.

It also clarifies the roles and responsibilities of issuers and licensed distributors, particularly for Category 2 issuances, where distributors must conduct due diligence and ensure ongoing compliance with regulatory requirements.

Ruben Bombardi, general counsel at VARA, said: “Trust is built through clarity, and clarity begins with disclosure. By strengthening the standards around how virtual assets are issued and communicated to the market, this Guidance reinforces Dubai’s position as a jurisdiction that enables responsible innovation while safeguarding market integrity.”

Governance and compliance expectations

The framework sets out requirements around governance, ongoing disclosure obligations and the treatment of asset-referenced virtual assets, including rules covering reserve assets, redemption rights and legal structuring.

VARA emphasised that compliance with issuance requirements does not amount to regulatory endorsement of any virtual asset or issuer, with responsibility remaining on market participants to assess risks and ensure adherence to applicable regulations.

The Guidance forms part of VARA’s broader efforts to build a transparent and well-regulated virtual assets ecosystem in Dubai, as demand for digital asset products continues to grow globally.

The Guidance on Virtual Asset Issuance is available on VARA’s official website.

PIF, King Street ink MoU for regional private credit fund

The planned fund will focus on providing private capital solutions to corporates and offering asset based lending in Saudi Arabia and MENA region

Neesha Salian
Neesha Salian

09 April, 2026

PIF, King Street ink MoU for regional private credit fund
Image: Getty Images/ For illustrative purposes

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King Street Capital Management and Saudi Arabia’s Public Investment Fund (PIF) said on Tuesday they have signed a non-binding memorandum of understanding for PIF to become an anchor investor in a new private credit fund targeting Saudi Arabia and the wider Middle East and North Africa region.

The announcement was made during the FII Priority Miami Summit 2026.

The planned fund will focus on providing private capital solutions to corporates and offering asset based lending in Saudi Arabia and MENA, with scope to invest in public market credit opportunities and select special situations.

PIF partnering with global asset managers

PIF has been expanding financial partnerships with international asset managers as part of its efforts to deepen the local capital market and draw global capital into the kingdom.

The new partnership aims to address rising demand for credit among regional businesses and is expected to attract additional long term foreign investment.

King Street, which manages more than $30bn in assets, said the fund will build on its three decades of experience in global credit markets, including emerging markets.

Founder and managing partner Brian Higgins said the regional private credit market may need to grow between 15 and 30 per cent annually over the next five years to support economic development, noting that this would complement the Gulf region’s banking sector and expanding capital markets.

The firm has been increasing its presence in Saudi Arabia and is in the process of opening an office in Riyadh.

The creation of the fund and PIF’s anchor commitment remain subject to definitive agreements, regulatory and internal approvals, and the completion of agreed milestones.

Choithrams rolls out new parking system across UAE stores

PARKONIC’s technology aims to improve parking flow and utilisation by introducing structured, tech-enabled management across retail locations

Gulf Business
Gulf Business

09 April, 2026

Choithrams rolls out new parking system across UAE stores

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Choithrams supermarkets in the UAE are introducing ticketless parking at selected stores using PARKONIC OS, aiming to enhance customer convenience. The system offers one hour of free parking validated at checkout. This initiative reflects Choithrams' commitment to improving the overall shopping experience by simplifying parking and reducing friction for customers.

UAE-based supermarket chain Choithrams has partnered with PARKONIC to introduce a streamlined, ticketless parking experience across selected store locations, marking a step forward in enhancing customer convenience beyond the in-store environment.

The initiative is powered by PARKONIC OS, a digitally managed parking platform designed to deliver a frictionless parking journey. The system removes the need for physical tickets, enabling a smoother and more efficient experience for shoppers from arrival to exit.

Read more-New parking zones introduced in Dubai: What you need to know about tariffs

Three Choithrams locations, DEC Marina, JVC Manhattan, and Dubai Silicon Oasis, have been selected for the pilot phase, with the rollout expected to be completed by mid-April.

Customer-centric innovation at the forefront

The move underscores Choithrams’ continued focus on improving customer experience by addressing everyday pain points such as parking availability and access.

Under the new system, customers receive one hour of complimentary parking. Validation is completed at checkout by entering the vehicle’s license plate number, with the applicable duration automatically applied upon exit.

“At Choithrams, being customer-centric is at the heart of what we do, and we are always looking at ways to make the shopping experience as smooth as possible,” said Mark Mortimer-Davies, CEO of Choithrams. “We understand that something as simple as finding a parking space can shape the overall visit, no one wants to arrive and struggle to find a spot.”

He added: “We’re putting our customers’ needs first, not only as a retailer, but as a brand that aims to make everyday experiences easier. This marks a step towards smarter, more integrated retail infrastructure, and we’re delighted to be working with PARKONIC to make this happen.”

Smarter parking for a seamless retail journey

PARKONIC’s technology aims to improve parking flow and utilisation by introducing structured, tech-enabled management across retail locations.

“Retail today is no longer just about what happens inside the store, but how seamlessly the entire visit comes together,” said Imad Alameddine, CEO of PARKONIC. “Our collaboration with Choithrams focuses on removing everyday friction points, starting from the moment customers arrive.”

He added: “By simplifying parking into a seamless, ticketless experience, we are supporting a more effortless and enjoyable journey for customers.”

Beyond the complimentary period, parking is priced at Dhs15 per additional hour. Payments can be made via on-site options, including QR codes or automatic deductions through SALIK accounts, where applicable.

The rollout reflects Choithrams’ broader commitment to operational excellence and customer-centric innovation, as retailers across the UAE increasingly invest in technology to enhance end-to-end shopping experiences.

Meta releases first new AI model in a year

Meta did not disclose Muse Spark’s size, a key measure typically used to compare an AI system’s computing power with rivals

Reuters
Reuters

09 April, 2026

Meta releases first new AI model in a year
Image: Getty Images

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Meta unveiled Muse Spark, its initial AI model from the "Avocado" team, aiming to rival industry leaders. While showing promise in language and visual understanding, it lags in coding. Initially available on Meta AI, it will replace Llama models across platforms. Meta envisions monetisation through shopping integration and enhanced user engagement, leveraging AI for everyday tasks and extended reasoning modes.

Meta Platforms on Wednesday unveiled Muse Spark, the first artificial intelligence model from a costly team it assembled last year to catch up with rivals in the AI race.

Shares of the company extended gains to trade up nearly 7 per cent.

US tech giants are under pressure to prove their massive AI outlays will pay off. The stakes are especially high for Meta after it hired Scale AI CEO Alex Wang last year under a $14.3bn deal and offered some engineers pay packages of hundreds of millions of dollars to staff a new superintelligence team, a bid to propel itself back into the AI world’s top ranks after a disappointing showing with its Llama 4 models early last year.

Superintelligence refers to AI machines that could outthink humans. Muse Spark is the first in a new series of models, known internally as Avocado, from that team.

The model, the first the company has released in about a year, initially will be available only on the lightly used Meta AI app and website. In the coming weeks, it will replace the existing Llama models powering chatbots on WhatsApp, Instagram, Facebook and Meta’s collection of smart glasses, the company said.

Meta did not disclose Muse Spark’s size, a key measure typically used to compare an AI system’s computing power with rivals. It also changed course from previous open releases of its Llama models, instead sharing only a “private preview” of Muse Spark with unnamed partners.

“This initial model is small and fast by design, yet capable enough to reason through complex questions in science, math, and health. It is a powerful foundation, and the next generation is already in development,” the company said in a blog post.

Independent evaluations of Muse Spark’s performance showed it catching up with top models from market leaders Google, OpenAI and Anthropic in some areas, like language and visual understanding, but lagging in others like coding and abstract reasoning.

The model tied for fourth place on a broad index of AI tests compiled by evaluation firm Artificial Analysis.

Meta CEO Mark Zuckerberg had tempered expectations for early performance, telling investors in January that he thought the team’s first models “will be good but, more importantly, will show the rapid trajectory that we’re on.”

“I expect us to steadily push the frontier over the course of the year as we continue to release new models,” he had said.

Wang, who runs the new superintelligence team, acknowledged in a series of social media posts on Wednesday that “there are certainly rough edges we will polish over time in model behavior.”

He said bigger versions of the model were in development and that Meta was planning to release at least some of them openly.

With the release, Meta gave a clearer sense of how it aims to use its models to make money, teasing shopping features embedded within its Meta AI chatbot that point users directly to products they can purchase.

Broadly, the company is betting that applying AI to everyday personal tasks will boost engagement among the more than 3.5 billion users across its social media platforms, potentially giving it an edge over rivals with a smaller reach.

Muse Spark can also help users with tasks such as estimating the calories in a meal from a photo or superimposing an image of a mug on a shelf to see how it looks, the company said.

An extra Contemplating Mode, which runs multiple agents simultaneously to boost reasoning power, would allow Muse Spark to take on the extended thinking modes of Google’s Gemini Deep Think and OpenAI’s GPT Pro.

Meta said people could use the mode for efficiently planning a family vacation, having one agent draft a travel itinerary while the other looks up kid-friendly activities.

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Tesla is developing a new smaller, cheaper electric SUV