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.

Elon Musk's company intends to unveil a more economical version of the Model Y SUV in order to recover its market share in China's highly competitive electric vehicle market. The company has also planned to set up mass production by 2026.

Tesla sales have been in a massive worldwide slump, including in China, where local EV companies have gained significant ground on the American automaker. Tesla releases refreshed Model Y in China, preps cheaper version for future: 'You will know after trying it' first appeared on The Cool Down.