Tesla's long-awaited plans for an affordable car include a U.S-made, stripped-down version of its best-selling electric SUV, the Model Y, but the production launch has been delayed, three sources with knowledge of the matter told Reuters.

The company is working on a cheaper Model Y that will initially be made in the US, codenamed E41, but the start of production has been delayed, Reuters reports. Tesla apparently wants to make 250,000 of these vehicles in the US in 2026.

Electric vehicle maker Tesla's (NASDAQ:TSLA) plans for an affordable U.S.-made version of its best-selling Model Y SUV has been delayed by at least a few months, Reuters reported on Friday, citing three sources with knowledge of the matter.