There have been rumors about a more affordable Tesla EV for a few years, but things seem to finally come together. According to three people who are knowledgeable about the matter, as quoted by Reuters, Tesla will launch a lower-cost model this year to try to regain lost ground in China and everywhere else.

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.