Tesla redesigning Model 3 to bring down costs — Report

3 years ago 1

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Electric vehicle (EV) manufacturer Tesla is redesigning the Model 3 to reduce manufacturing costs.

That is according to a report from Reuters, which said Tesla had codenamed the new variant of its cheapest car “Highland”.

The project reportedly aims to reduce the complexity and number of components used to make the Model 3, which could see changes to the exterior and powertrain performance.

Reuters said the project builds on the revamped 2021 Model S, Tesla’s latest luxury EV, but did not confirm whether that meant it would include its much-debated steering yoke.

Tesla is planning to start manufacturing the new Model 3 at its Shanghai Gigafactory in China around the third quarter of 2023, after which the Fremont plant in the US will also begin making the car.

It is unclear how much Tesla expects to bring down production costs or whether it will pass that saving on to customers.

The new Model 3 could also pack Tesla’s next-generation 4680 battery cells, although Reuters’ report does not confirm this.

In 2020, Tesla CEO Elon Musk claimed the improved battery design would allow the company to sell a $25,000 (R424,350, excl. taxes) electric car within three years.

It currently sells the Tesla Model 3 with a starting price tag of $40,390 (R686,178) for the standard rear-wheel drive option.

According to Engadget, Tesla pockets around $9,500 (R161,394) of profit on each car it makes.

The tech publication has also cautioned against taking Reuters’ report as gospel, as the news agency’s recent speculations on Tesla developments have been a hit-and-miss affair.