06:35 AM EDT, 03/14/2025 (MT Newswires) -- Tesla (TSLA) plans to manufacture a cheaper version of its Model Y vehicle in Shanghai, mainly targeting Chinese customers, Reuters reported Friday, citing three people with knowledge of the matter.

The US electric vehicle maker will build the model using existing production lines, the unnamed sources told the news agency. Mass production will commence next year, Reuters reported, citing two of the people.

The vehicle will be smaller and cost at least 20% less to produce than the Model Y launched in late 2024, two of sources told the news agency.

Tesla didn't respond to Reuters' request for comment.

The company did not immediately reply to MT Newswires' request for comment.

Its shares were up 1.8% in recent premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)