In a nutshell: Tesla is reportedly engaged on a redesigned model of its five-year-old Model 3 that goals to scale back manufacturing prices whereas specializing in facilities that attraction to customers. The challenge, codenamed “Highland,” will goal to slash prices by slicing down on the variety of particular person elements used within the inside of the car.
Additional revisions, together with modifications to the sedan’s exterior and powertrain, may additionally accompany the refresh in accordance with supply aware of the matter as reported by Reuters.
Tesla is understood to make use of casting machines to create single, bigger elements to scale back prices and expedite meeting. Limiting the variety of particular person elements utilized in a construct would additionally presumably put much less stress on the availability chain.
“Over and over, we discovered components that aren’t wanted. They have been put in there simply in case or by mistake. We eradicated so many components from a automotive that did nothing,” Musk mentioned throughout an interview at a Baron Funds convention earlier this month.
Sources mentioned the refreshed Model 3 will go into manufacturing at Tesla’s Gigafactory in Shanghai beginning within the third quarter of 2023. Production can be anticipated to happen at Tesla’s Fremont, California, plant however it’s unclear when work will start there. Reuters additionally did not know what kind of potential price financial savings Tesla is perhaps taking a look at with the modifications or if any of the financial savings shall be handed alongside to patrons within the type of value cuts.
Tesla is dealing with elevated stress from conventional automakers on the EV entrance together with Chevy with its new Blazer EV and Ford’s all-electric F-150 Lightning. GMC additionally just lately introduced its 2024 Sierra Denali EV pickup beginning at a cool $107,000 earlier than seller charges.
The EV maker can be feeling the warmth from abroad rivals. In China, which is Tesla’s second largest market behind the US, gross sales of the Model 3 have been down 9 p.c throughout the primary 10 months of 2022 in comparison with a 12 months earlier.
Tesla’s most inexpensive Model 3 begins at $46,990 as of writing earlier than any potential gasoline financial savings are factored into the equation. In the newest quarter, Tesla produced a mixed 345,988 Model 3 / Model Y automobiles.
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