Tesla to revamp Model 3 in bid to cut costs

STORY: Tesla is developing a revamped version of its Model 3.

That’s according to four people with knowledge of the effort.

It comes as the top EV maker aims to cut production costs and boost the appeal of the five-year-old electric sedan, which is its cheapest model.

The sources say one focus of the redesign, codenamed "Highland", is to reduce component numbers and complexity in the interior.

While focusing on features that Tesla buyers value, including the display.

The previously unreported redesign comes as the sedan faces increased competition from the likes of China's BYD and South Korea's Hyundai.

Two of the sources said the updated version of the car will go into production at Tesla facilities in Shanghai and Fremont, California.

They said Tesla’s Shanghai Gigafactory will put it into production in the third quarter of 2023.

It was not clear when production would start in Fremont, or how large a cost saving Tesla would achieve from the redesign.

The key Tesla project has rolled on even as chief Elon Musk has focused on his troubled recent acquisition of Twitter, an area of concern for Tesla investors.

Tesla did not respond to a written request for comment by Reuters.