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.

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

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.