Tesla (TSLA) shares moved up 1.7% in premarket trading, clawing back a chunk of Thursday’s 3% loss after a report that the EV maker is planning a lower-cost Model Y for China.
The smaller version of Tesla’s best-selling model will cost at least 20% less to manufacture, Reuters reported.
The plan is a bid to regain market share in China, where Tesla has lost a lot of ground. Its shares have dropped over 30% in the past month as sales slid in Europe, too, and amid dismay at CEO Elon Musk’s role on President Trump’s team. The stock has erased all its post-election gains.
Meanwhile, Trump’s tariff policy is causing concern at Tesla, which has signaled it’s worried that an escalating tit-for-tat trade war will ramp up its manufacturing costs.