in short: Tesla is reportedly working on a redesign of its five-year-old Model 3 aimed at reducing production costs while focusing on amenities that appeal to shoppers. Code-named “Highland,” the project aims to cut costs by reducing the number of individual components used inside the vehicle.
Other modifications, including changes to the sedan’s exterior and powertrain, could also accompany the update, according to a source familiar with the matter, Reuters reported.
Tesla has been known to use casting machines to create individual larger components to reduce costs and speed up assembly. Limiting the number of individual components used in a build could also reduce pressure on the supply chain.
“Over and over, we found parts we didn’t need. They were put in there just in case or by mistake. We eliminated so many parts from a car that didn’t do anything,” Musk said earlier this month. said in an interview at the Baron Fund conference.
source Say Production of the updated Model 3 will start in the third quarter of 2023 at Tesla’s Gigafactory in Shanghai. Production is also expected to take place at Tesla’s factory in Fremont, California, but it’s unclear when work will start. Reuters also doesn’t know what potential cost savings Tesla might realize through the changes, or whether any savings will be passed on to buyers in the form of price cuts.
Tesla is facing increasing pressure from traditional automakers in the electric car space, including new Chevrolet vehicles Trailblazer EV and Ford’s all-electric F-150 Lightning. GMC also recently announced a low starting price for its 2024 Sierra Denali EV pickup $107,000 before dealer fees.
The electric car maker is also feeling the heat from overseas rivals. In China, Tesla’s second-biggest market after the U.S., Model 3 sales fell 9% in the first 10 months of 2022 compared with the same period last year.
As of this writing, Tesla’s most affordable Model 3 starts at $46,990, before factoring in any potential fuel savings.In the most recent quarter, Tesla produced A total of 345,988 Model 3 / Model Y vehicles.
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