Tesla is Revising The Model 3 in an Effort to Lower Manufacturing Costs

Tesla is revising the Model 3 in an effort to lower manufacturing costs

The Reuters news agency reports that Tesla is revamping the Model 3 under the “Highland” codename. According to reports, the company’s goal is to simplify the manufacturing process and cut down on the number of parts needed to construct the sedan. Improvements to the car’s exterior and engine might be part of the redesign.

The project is supposed to expand upon the 2021 Model S’s redesign. But it’s not clear if the Model 3’s more expensive sibling’s controversial steering wheel will be added to the new version.

According to Reuters, production of the new Model 3 will kick off at Tesla’s Shanghai Gigafactory in the third quarter of 2023. The redesigned sedan will be produced at the company’s Fremont facility. We don’t know how much money Tesla will save on the new Model 3, or if it will pass those savings on to customers.

Currently, Tesla nets around $9,500 per vehicle produced. Reuters also doesn’t specify if the update will include the automaker’s new 4680 battery cells. Elon Musk claimed in 2020 that Tesla would be able to mass-produce an electric car for $25,000 thanks to the company’s new battery design.

Even if the timeline for 2023 is correct, it is likely to shift. Recent Tesla coverage from Reuters hasn’t been great, and the news organization isn’t exactly known for meeting deadlines. For instance, Elon Musk promised in 2011 that mass production of the Cybertruck would begin in 2021. This target was first pushed back to 2022 and then to 2023.