Tesla plans to slow down production at its Shanghai plant in the last week of February to prepare for an updated version of the Model 3 sedan.
This, according to Reuters, was first reported by Bloomberg, while the company itself did not comment on the new version of the model. code name Highland.
As CEO Elon Musk announced, the strategy and product roadmap will be announced on March 1st, Investor Day.
Purpose and timing
The new version is expected to go into production in Shanghai in September, according to a person familiar with the new venture, who declined to be named.
With this new model, Tesla is looking to cut manufacturing costs and improve the looks of its five-year-old electric sedan.
One of the priorities will be to reduce the number of components and the complexity within it. The appearance and characteristics of the engine and transmission systems will also be changed.
The updated model will be assembled at the Fremont plant in California. In addition, permits filed since June last year for some changes to the plant mention the Highland program.
What does the code name mean?
No one knows what the Highland symbolizes, which is only speculation.
Loyal fans of Musk and his four-wheeled empire have speculated that “Highland” may be a reference to Ford’s Highland Park plant, where American automobile pioneer Henry Ford set up his production line.
Others, noting that Musk has a soft spot for movie references, see the title as a reference to the 1986 film. Highlanderfamous for the battle of the immortals and the saying “there can only be one”.
Why does it matter?
Tesla has only two base models worldwide. The Model Y crossover has outsold the Model 3 and analysts believe it needs an update.
And while declining prices in the auto industry internationally have boosted sales, sales growth in China is showing signs of easing.
Specifically, Model 3 sales quadrupled in January after a 14% price cut for the base model. However, in the first week of February, sales fell by more than two-thirds from the end of January, according to data from China Merchants Bank International. In contrast, Model Y sales remain stagnant.
Experts say Tesla needs to upgrade its products so as not to lose share of its fast-growing competitors in the Chinese market.
Source: Reuters.
Source: Kathimerini
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