Tesla teases a new EV

Tesla Motors has released the first sketch showing its upcoming subcompact EV with a hatchback body style. Produced in China for the international market, the car will likely be the most affordable model on the lineup.

Elon Musk had previously mentioned that he wanted to establish a research center in China to design a brand-new electric car and sell it worldwide.

Late last year, the company launched the Gigafactory 3 in the country, its first factory outside of the United States. Musk intends to produce huge quantities of EVs every year, and the first Model 3 batch has already shipped.

Localizing the production processes in China has enabled Tesla to save substantial amounts on importing parts from overseas. Whereas a U.S.-produced Tesla starts from 439,000 Chinese Yuan, a locally produced one starts as low as 355,800. The Gigafactory 3 is currently getting ready to start the production of the Model Y.