EV update: Tesla Model 3 refresh, what to watch in upcoming shareholder meeting

Yahoo Finance automotive correspondent Pras Subramanian joins Yahoo Finance Live to discuss Tesla's Model 3 update nearing trial production in China, and what to watch for investors with Tesla's shareholder meeting on Tuesday.

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RACHELLE AKUFFO: The EV race in China is heating up as Tesla's long awaited Model 3 Refresh reportedly nears final trial production in Shanghai. That's according to Bloomberg. For more details on this we have Yahoo Finance's Pras Subramanian. Looking forward to this update, Pras.

PRAS SUBRAMANIAN: Hey, Rachelle. So yeah, this the Tesla Model 3 update you said nearing trial production in China according to Bloomberg. This version will be longer, sportier, sleeker, a sleeker interior design that is. And it's also very secretive down there because Tesla is making workers lock away their phones in special lockers so they don't take pictures or leak photos of the production line, which actually they may shut down part of the Shanghai for this for a few days to get ready for it.

So you know, this rumor kind of goes back all the way to November when Reuters first reported that this Project Highland code named for the Model 3 update was going to come out in China because this is an important update because the Model 3 is sort of long in the tooth. It's been out since 2017. So updates are sorely needed here. But I think a big part of this is the fact that they want to improve the prestige of the Model 3. It's been around for like for a long time, as I said. Get more oomph in the market in that competitive Chinese marketplace. And possibly raise prices too with this new model. So it's also play to boost profitability for Tesla.

RACHELLE AKUFFO: And one of the things-- I mean, come on now, I need a new Tesla Model to come out. I need something fresh that's all the way fresh. They're going to be having their shareholder meeting coming up this afternoon at 4:00 PM Eastern. Is there anything that you would like to hear that you're hoping that we hear from Tesla today?

PRAS SUBRAMANIAN: Well, definitely a few things we're going to hear about are the shareholder votes from board members like Robyn Denholm and JB Straubel, the former co-founder who came back to Tesla. I think people are hoping that goes through because he's sort of known as a steadying voice potentially against Musk and his fieriness. But from like things that maybe investors want to hear, maybe Tesla fans want to hear, maybe they want to hear more about that Model 3 Project Highland. Maybe they want to hear more about that Gen 3 platform.

I don't think we're going to see that, but we might. You never know. Tesla, they're known to sort of surprise here and there. So I think you might hear more about these potential product updates if we're lucky, but likely they'll talk about demand, pricing, and things like that in terms of corporate governance too.

RACHELLE AKUFFO: And certainly less distractions now that he's not the CEO of Twitter, now he's named a new one. So hopefully we'll see that reflected in some of the focus there as well. Yahoo Finance's Pras Subramanian. Thanks so much.