Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens Wu Yanzu in South China for the delivery of clues! CTOnews.com, Nov. 29 (Reuters)-Tesla is developing a revamped Model 3, which aims to cut production costs and improve the attractiveness of the five-year-old electric car, according to four people familiar with the matter.

According to these people, the redesigned Model 3, code-named "Highland", will focus on reducing the number and complexity of the internal components of the Model 3, while focusing on features valued by Tesla buyers, including the display screen.

The revamped model could also include changes to the appearance and powertrain performance of the Model 3, which will be put into production at Tesla's plant in Shanghai and the company's plant in Fremont, California, two of the people said. Tesla's Shanghai super factory will start production of the Model 3 in the third quarter of 2023, they said.

It is not clear when the Fremont plant will start production, or how much cost savings Tesla will achieve through redesign in the process of working with suppliers.

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

Ed Kim, president of AutoPacific Group, which tracks market trends and production, said that the current Model 3 has been updated from its first release in 2017, because Tesla updates battery performance, information and entertainment functions through software, even if it still looks the same. "in spite of this, consumers still tend to equate visual changes with freshness, and Tesla knows that visual changes are necessary," he said. "

Mr. Musk promoted a simplified design and production method at Tesla, which was extended by the Highland project, according to people familiar with the matter.

Tesla pioneered the use of a large casting machine called Giga Press, made by the Italian IDRA Group, to produce single, larger auto parts during assembly to reduce costs and speed up production. It has also designed a structural battery pack that abandons more expensive modules.

Mr Musk has said Tesla hopes to reduce costs through simplification and is committed to developing a small car platform that will cost half as much as Model 3.

CTOnews.com learns that this is part of what makes Tesla the most profitable electric car maker, while many competitors are still losing money. Tesla made a profit of just over $9500 per car sold in the third quarter, while Toyota made a profit of about $1300, according to the two companies.

Tesla's sales in China are under pressure. Sales of Model 3 in China fell 9% in the first 10 months compared with the same period last year, while BYD's Qin and Han outsold Model 3, according to FIFA. To boost sales, Tesla cut the prices of Model 3 and Model Y by 9% in China in October and offered additional kickbacks to buyers who handed in their cars immediately.

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