Tesla to Produce Lower-Cost Model Y in Shanghai to Defend Market Share
Tesla plans to produce a lower-cost version of its Model Y in Shanghai, aiming to regain ground lost in China's competitive EV market, according to sources familiar with the matter.
Developed under the codename "E41," the model will be built on existing production lines, with mass production set to begin in 2026. The new Model Y will be smaller and at least 20% cheaper to produce than the refreshed version launched last year.
While primarily intended for the Chinese market, production is also planned in Europe and North America. Tesla has not commented on the project.
