Tesla is launching a budget version of its Model Y vehicle. Elon Musk's electric vehicle firm has suffered a dramatic decline in sales and share

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.

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

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.

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 will launch a stripped-down Model Y as its first "affordable" electric vehicle, according to a Chinese media report Thursday, while Reuters had a slightly different take Friday. Tesla stock rose slightly Friday after falling Thursday amid general market weakness.

Tesla is preparing to launch a couple of new more affordable electric vehicles and the first one is expected to basically be a stripped-down Model Y, according to a new report from China. We have been reporting on this new vehicle program from Tesla for a while now.