Electric vehicle maker Tesla is warning that the Trump administration's trade policies could be detrimental to U.S.-based EV companies.

There have been rumors about a more affordable Tesla EV for a few years, but the stars may finally line up. According to three anonymous sources with knowledge on the matter, as quoted by Reuters, Tesla will launch a lower-cost model this year to try and regain lost ground in China—and everywhere else.

Elon Musk's Tesla stock value took another hit Thursday, despite Tuesday's "Trump Bump" at the White House. The U.S. president showcased the billionaire and top DOGE adviser's EVs on the front lawn. The move was widely seen as an effort to boost Tesla's bottom line.