Tesla Is Reported To Be Developing A Facelifted Model 3, Production Starts In The Third Quarter Of 2023

According to Reuters, and according to four people familiar with the matter, Tesla is developing a facelifted Model 3, aiming to cut production costs and improve the appeal of the five-year-old electric sedan.

Code-named "Highland," a facelifted Model 3 redesign focused on reducing the number and complexity of the Model 3's internal components while focusing on features valued by Tesla buyers, including the display, according to these people.

The facelift, which could also include some changes to the Model 3's exterior and powertrain performance, will go into production at Tesla's factory in Shanghai and the company's factory in Fremont, California, two of the people said. Tesla's Shanghai Gigafactory will start producing the facelifted Model 3 in the third quarter of 2023, they said.

It's unclear when production will begin at the Fremont factory, or how much Tesla will realize cost savings from the redesign as it works with suppliers.

Last year, Tesla launched the facelifted Model S, using a new Yoke steering wheel to replace the traditional steering wheel, and canceled the buttons and traditional air-conditioning vents, using a 17-inch central control screen.

Ed Kim, president of the AutoPacific Group, which tracks market trends and production, said the current Model 3 has been updated since the version that first went on sale in 2017 as Tesla updates battery performance, information and entertainment features through software, even though it still looks Same. "Still, consumers tend to equate visual change with novelty, and Tesla knows that visually tangible change is necessary," he said.

The "Highland" project is an extension of Musk's push for a simplified approach to design and production at Tesla, the people said.

Tesla pioneered the use of a large casting machine called a Giga Press, built by Italy's IDRA group, to create single, larger car parts as they are assembled to reduce costs and speed up production. It also designed a structural battery pack that does away with more expensive modules.

Musk has said Tesla wants to reduce costs by simplifying and is working on a small car platform that will cost half as much as the Model 3.

AndroBliz understands that this practice is part of what has made Tesla the most profitable electric car maker, while many competitors are still losing money. In the third quarter, Tesla earned just over $9,500 per vehicle sold, while Toyota made about $1,300, according to disclosures from both companies.

Tesla's sales in China are currently under pressure. Sales of the Model 3 in China in the first 10 months were down 9 percent from a year earlier, while BYD's Qin and Han outsold the Model 3, according to the China Travel Association.

To spur sales, Tesla in October cut the price of the Model 3 and Model Y in China by 9% and offered additional rebates for immediate delivery buyers.