Tesla Working on Model 3 Redesign, Report Says

Tesla is looking to redesign the Model 3 in an effort to cut production costs by reducing the number of components and overall complexity, according to a report from Reuters on Monday.

The redesign, codenamed Highland, will focus on things buyers care about most, which includes the display and performance, according to four people who spoke anonymously to Reuters. They also said Highland would go intro production in the third quarter of 2023 at Tesla's factories in Fremont, California, and Shanghai, China.

Tesla couldn't be reached for comment as owner Elon Musk disbanded the company's media relations department in 2020.

The Tesla Model 3 is the company's cheapest car, starting at $46,990. It's also ranks No. 2 on the best-selling electric vehicles in the US, being beaten out by Tesla's larger Model Y. But with increased competition from Ford, Kia and just about every other automaker, the EV space is giving consumers more options. Not only is Tesla stock facing competition pressure, but Musk's $44 billion purchase of Twitter earlier this month, as well as how he's been handling the social media platform since taking over, is making investors uneasy. Tesla stock was down 50% after his purchase of Twitter.

The redesigned Model 3 will reportedly borrow from the Model S revamp from last year. This will include the airplane-style yoke steering wheel and fewer buttons.