Tesla looks to lower costs with revamped Model 3 production

Justin Sullivan

Tesla (NASDAQ:TSLA) is said to be developing a revamped version of Model 3. Sources tell Reuters the electric vehicle maker is looking to lower production costs with a redesign codenamed "Highland."

The Model 3 redesign is expected to reduce the number of components and complexity in the interior of the vehicle while still focusing on features that Tesla buyers value, including the display.

The redesign is slated to be part of production out of Shanghai in Q3 of 2023 and at an undetermined time from the Fremont plant. The amount of cost savings from the redesign is not yet clear.

The big picture: The report could tamp down some anxiety that important projects at Tesla (TSLA) are not motoring ahead as expected due to the Twitter distraction for Elon Musk. Wedbush Securities analyst Dan Ives thinks that Elon Musk must reassure investors over the coming weeks and months that the Twitter soap opera will not interfere with the longer term Tesla (TSLA) growth story.

Shares of Tesla (TSLA) fell 1.77% in early trading on Monday with COVID concerns out of China impacting many stocks with production or supply chains in the nation.

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