Reuters reported on Friday that Tesla was delaying a stripped-down version of its Model Y. If that is indeed what Tesla had planned to launch as its lower-priced model—and production doesn’t happen at all this year—investors will be disappointed.

A smaller and more affordable Model Y that's 20% cheaper to produce was initially planned to be released in the first half of this year

The company is working on a cheaper Model Y that will initially be made in the US, codenamed E41, but the start of production has been delayed, Reuters reports. Tesla apparently wants to make 250,000 of these vehicles in the US in 2026.