A report from Reuters states Tesla is planning a more affordable vehicle based on the Model Y electric crossover. It will be built first in China, but then in North America and Europe.

Not too long ago, Tesla had much of China’s new EV market to itself, but as local rivals like BYD are on their way to becoming international juggernauts, the American brand is now facing more competition than ever before. To combat this, Tesla’s Chinese division has reportedly developed a new, lower-priced version of the Model Y.

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