It looks increasingly likely that the much touted $25,000 entry level Tesla known colloquially as the Model 2 will not be built.

Tesla has plans to produce a low-cost version of its best-selling Model Y to boost sluggish sales in China, according to a report. The car will cost at least 20% less to produce than the version launched last year, and will be manufactured on existing production lines, sources with knowledge of the matter told Reuters.

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.