In a bid to regain market share in China, Tesla (NASDAQ:TSLA) is reportedly developing a lower-cost version of its best-selling Model Y in Shanghai. Citing people with knowledge of the matter, Reuters reported that the new model will be more compact and at least 20% cheaper to manufacture than the refreshed Model Y,

Tesla reportedly plans to launch a more affordable version of the Model Y in China, produced at its Shanghai Gigafactory, with mass production starting in 2026. This new model will be smaller and cheaper to manufacture,

Tesla will make a lower-cost version of its best-selling Model Y in Shanghai, three people with knowledge of the matter said, aiming to regain ground lost during a price war in its second-largest market.

The stripped-down SUV is aimed at recovering market share from Chinese makers offering less-expensive models.

In view of Tesla's declining market share, insiders say the company is working on an affordable new model based on the Model Y. The vehicle is to be built in

The US company’s share of the world’s largest EV market has dropped to 4.3 per cent from more than 16 per cent in 2022.

Tesla has received massive orders for its refreshed Model Y SUV in mainland China, a major boost for the US electric vehicle (EV) maker after sales fell sharply last month. The company’s Gigafactory in Shanghai,