The stripped-down SUV is aimed at recovering market share from Chinese makers offering less-expensive models.

But now, it seems that the view of Tesla as a luxury foreign EV maker is waning and demand for Tesla’s cars in general is cooling. Despite a revamped Model Y going on sale in China recently, its overall sales in the country dipped by 51.47% in January, according to Teslarati.

SHANGHAI (Reuters) -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.

The US company’s share of the world’s largest EV market has dropped to 4.3 per cent from more than 16 per cent in 2022.