Sources say the new EV will be a smaller Model Y, with mass production starting in 2026. Local rivals like BYD are eroding Tesla’s market share, prompting a new affordable model. The new electric car will reportedly be produced in China,

Tesla has plans to produce a low-cost version of its best-selling Model Y to boost sluggish sales in China, according to a report. The car will cost at least 20% less to produce than the version launched last year,

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,