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.

Tesla is reportedly planning a smaller version of the Model Y that's cheaper to build as it looks to defend market share in the crucial Chinese market.

In a bid to regain market share in China, Tesla ( NASDAQ: TSLA) is reportedly developing a lower-cost version of its best-selling Model Y in Shanghai.