Tesla is redesigning the Model 3 to reduce production costs

Tesla is reportedly redesigning its Model 3, codenamed "Highland," with the goal of reducing the complexity and number of components required for production. The redesign may include changes to the car's appearance and powertrain performance. It is said that the project is also based on modifications made to the 2021 Model S. However, it is unclear whether the redesigned Model 3 will adopt the controversial yoke steering present in its more expensive siblings.

According to Reuters, Tesla's Shanghai Gigafactory is expected to start producing the new Model 3 in the third quarter of 2023. The company's Fremont factory will also produce the redesigned sedan. It is currently unknown how much cost savings Tesla aims to achieve with the new Model 3, and whether the company will pass those savings on to consumers. Tesla currently earns around $9,500 in profit per car produced. Reuters also did not mention whether this update will incorporate the automaker's next-generation 4680 battery. Elon Musk has stated that the new battery design will enable Tesla to produce a $25,000 electric vehicle within three years by 2020.

It is worth noting that even if the 2023 timeline is accurate, it may change. Reuters' recent track record with Tesla reports has not been the best, and the company is not known for adhering to deadlines. For example, when the automaker initially announced the launch of the Cybertruck, Elon Musk stated that mass production would begin in 2021. This date was later pushed back to 2022 and then to 2023.