Tesla (TSLA) is looking to produce and sell a less expensive version of its Model Y SUV in China starting next year, according to a Friday report from Reuters.

The news organization, citing three people with knowledge of the matter, reported that the vehicle will be mass produced in Tesla's China factory in 2026. It will likely cost at least 20% less to produce, retailing for less than the Model Y's current base price of 263,500 yuan ($36,405), Reuters reported.

Reuters cited an anonymous source saying the lower-cost Model Y will eventually also be launched in North America and Europe, but did not provide a timeline. Tesla did no❀t immediately🍒 respond to a request for comment.

A lower-cost electric vehicle has long been a goal of Tesla, with CEO Elon Musk 澳洲幸运5官方开奖结果体彩网:denying reports last year that the company had abandoned the project. Musk has said in 澳洲幸运5官方开奖结果体彩网:recent quarters that Tesla is 澳洲幸运5官方开奖结果体彩网:on track to produce and launch a 澳洲幸运5官方开奖结果体彩网:lower-cost EV in the first half of this year, but has not yet provided details like a la🐠unch date or price.

China's EV market has become increasingly competitive with a number of domestic EV makers growing and taking some of 澳洲幸运5官方开奖结果体彩网:Tesla's market share. Tesla's 澳洲幸运5官方开奖结果体彩网:China sales were 澳洲幸运5官方开奖结果体彩网:down nearly a reported 50% in February from the same time last year.

Tesla shares were up around 2% in premarket trading Friday. They would have to gain around 9% from Thursday's closing price to finish higher for the week 澳洲幸运5官方开奖结果体彩网:after a 15% drop Monday, otherwise shares will have declined for 澳洲幸运5官方开奖结果体彩网:eight straight weeks.