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.

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.

Key Takeaways Tesla is set to produce and launch a lower-cost Model Y vehicle in China likely in 2026, Reuters reported Friday—citing people with knowledge of the matter.The vehicle will also eventually be launched in Europe and North America,