Tesla will launch a stripped-down Model Y as its first "affordable" electric vehicle, according to a Chinese media report Thursday, while Reuters had a slightly different take Friday. Tesla stock popped Friday morning after falling Thursday amid general market weakness.

Tesla China is working on a cheap Model Y variant that might launch later this year to boost demand if the refreshed Model Y sales disappoint

It looks increasingly likely that the much touted $25,000 entry level Tesla known colloquially as the Model 2 will not be built.