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

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,

The new model, codenamed "E41," will be manufactured at Tesla's Shanghai Gigafactory and mass production is tipped to begin in 2026. The new Model Y will be smaller and at least 20% cheaper to manufacture than the refreshed version that debuted in 2023. The current car, a mid-sized SUV crossover, retails at around $36,351.