A tiny house that looks and feels like a sumptuous oasis in the middle of nature, ready to recharge and refresh the energy of its guests – this is how the Tesla model could be described.

The EV maker plans to build and manage its Megapack energy products in over a 1-million-square-foot building near Katy, Texas, the report said.

A small crossover-style hatchback priced at $25,000 could boost sales, but success hinges on market conditions. The prospect ...