(KRON) -- Over the weekend, Tesla's social media accounts teased a major announcement for Tuesday. That announcement is expected to be a long-anticipated cheaper version of the Tesla Model Y, according to Bloomberg, citing people familiar with the matter.

The new, cheaper Model Y is reportedly intended to counter the loss of electric vehicle incentives in the U.S. and to counter the emergence of newer, cheaper Chinese EV models. The cheaper version of the Model Y, according to Bloomberg, will use cheaper materials and lack certain features.

On Monday, Tesla saw its shares rise more than 5% following the weekend release of the teaser videos on X, the social media platform owned by Tesla CEO Elon Musk.

Tesla relocated its headquarters from Silicon Valley to Austin, Texas several years ago

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