Key Takeaways Tesla is set to produce and launch a lower-cost Model Y vehicle in China likely in 2026, Reuters reported Friday—citing people with knowledge of the matter.The vehicle will also eventually be launched in Europe and North America,

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

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.