The new long range rear-wheel drive version costs about US$44,990, before a US$7,500 federal tax credit, the electric vehicle makers’ website showed. Including the tax credit, the new vehicle will cost US$37,490.

Reuters previously reported that Tesla’s plans for an affordable car included a stripped-down version of its best-selling electric SUV, but the production launch had been delayed.

Tesla’s Model Y long range all-wheel drive version in the US did not see any cost adjustment and is priced at US$48,990.

Tesla’s quarterly sales plunged 13% to the weakest in nearly three years, hurt by a backlash against CEO Elon Musk’s politics and rising global competition.

The company is scheduled to report third-quarter earnings on July 23.