According to three people with knowledge of the idea, Tesla (TSLA.O) is getting ready to restructure the manufacture of its best-selling Tesla Model Y.
Two of the insiders, who asked to remain anonymous since the planning is ongoing, said that the Tesla Model Y improvements, which are code-named Project Juniper at Tesla, affect both the appearance and interior of the crossover electric car with a target of starting production in 2024.
In response to criticism in regions like China and the United States for a visible reboot of its best-selling vehicles in the face of growing options for EV purchasers, a redesign of the Tesla Model Y would mean Tesla is on track to offer new versions of its top-selling models over the next two years.
The manufacturer has made no comments regarding its anticipated model changes or product strategy. When questioned by Reuters on the future of the Tesla Model Y, which was its best-selling product in California, China, and Europe last year, Tesla chose not to respond right away.
Elon Musk, the business’s chief executive, has said that he will talk about the third phase of the “Master Plan” later on Wednesday when the company has an investor day event.
According to Reuters, Tesla has already been hard at work retooling its Shanghai assembly factory in anticipation of a revised Model 3 sedan, a project dubbed Highland by Tesla.
A person with knowledge of the situation predicts that the Highland Model 3 will begin manufacturing in Shanghai in September.
Tesla’s Highland project aims to reduce production costs while increasing the appeal of an electric sedan that initially went on sale in 2017, according to those involved in the project. In order to increase production efficiency, they also announced that the exterior and powertrain performance would be altered.
According to two of the persons, Tesla has independently requested estimates from suppliers for an updated Project Juniper Tesla Model Y’s exterior and interior parts, which will go into production in 2019.
According to one of the persons, production is anticipated to begin in October 2024.
It was unclear at first how extensive the redesign would be or what precise adjustments or enhancements Tesla was hoping to make with the new Tesla Model Y.
Tesla has announced that it will discuss its next-generation vehicle platforms at the investor day event that will be held at its Gigafactory in Texas on Wednesday. Elon Musk has claimed that these platforms would result in a vehicle that costs about half as much as Tesla’s current vehicle underpinnings.
Long-term expansion plans, cash allocation, and other topics will also be covered, according to Tesla.
Even after cutting prices, the top EV manufacturer has experienced growing competitive pressure in China, its second-largest market after the United States.
Experts claim that’s in part because it’s been perceived as falling behind rivals in providing new models, enhanced navigation, or opulent interior features that car buyers in the biggest EV market in the world are looking for.
A redesigned Tesla Model Y, the first of which would be delivered to consumers in 2020, would necessitate supply and manufacturing modifications for a vehicle that is now manufactured in all three of Tesla’s key production hubs: the US, China, and Germany.
Tesla has accelerated the speed of change in its electric vehicles, in contrast to conventional automakers that have a tendency to make small model-year improvements to automobiles before delivering a whole new version.
According to analysts, Tesla frequently upgrades the software and even changes the hardware of its electric vehicles to add features, boost performance, or lower production costs.
For instance, Tesla stated on Wednesday that it has modified the suspension system on the Tesla Model Y manufactured in China since January in order to improve the ride quality. Tesla enthusiasts praised the improvement on social media.
Earlier this week, according to the firm, Tesla’s factory close to Berlin achieved a new manufacturing record equal to an annual output of almost 200,000 Model Ys. That was three weeks ahead of a Reuters-reviewed internal production target.