According to report by Chinese media outlet 36kr, Tesla is reportedly gearing up to produce 4 million units of what will be its most affordable vehicle also known as the Model 2.

Production of Tesla's cheapest Model 2 electric vehicle will reportedly be split between North America, Shanghai, and Giga Berlin. The Model 2 may be similar to Model Y in design, claim insiders, just much smaller, and could cost 150,000 RMB (US$21,800).

If Tesla intends to stick to its plan to build 20 million vehicles per year by the end of the decade, the automaker is going to need to expand its vehicle lineup quickly. It not only needs new vehicles in the lineup, it needs cheaper vehicles.