Tesla Inc. TSLA could introduce an improved version of its Model 3 mass-market all-electric sedan.
What Happened: The Austin, Texas-based car manufacturer is working on a revamped version of its Model 3 vehicle. The redesign has been codenamed Highland, Reuters reported.
Tesla aims to reduce the number of components in the interior of the vehicle and improve features that will add to buyers value, including the display. Some changes to the exterior and powertrain performance are also being considered, the report added.
The revamped Model 3 will go into production at Teslas Shanghai Gigafactory in the third quarter of 2023. Production plans for the Fremont plant and the cost savings the company is targeting arent yet clear.
The effort underlines Teslas production strategy of removing complexity and cost, a move which has been aped by other automakers, Reuters contiued.
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Why Its Important: The Model 3 sedan, launched in 2017, is one of Tesla's best-selling models along with its Model Y SUV.
Tesla currently sells a rear-wheel drive version, which has a starting price of $40,390, after potential savings, and a dual motor all-wheel drive variant priced at $56,390.
Any price cuts achieved on the backdrop of the revamp could come in handy for Tesla to increase volume amid an uncertain economic backdrop.
Similarly, reducing production complexity could also serve it well as geopolitical tensions cast a cloud on production plans.
The development could also be sending a positive signal about Tesla's future, as investors remain skittish about CEO Elon Musk's reduced involvement in his flagship car venture following his Twitter takeover.
In premarket trading on Monday, Tesla shares were down 2.02% at $179.16, according to Benzinga Pro data.
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