Tesla Stock Rose on Hopes That a New Manufacturing Method for the Model 3 Would Reduce Costs

Tesla Stock


It has been reported that Tesla (NASDAQ:TSLA) is working on a redesigned version of the Model 3. According to sources quoted by Reuters, the manufacturer of electric vehicles is working on a redesign internally referred to as “Highland” to reduce manufacturing costs.

It is anticipated that the redesign of the Model 3 would cut down on the number of components and complexity found inside the vehicle’s cabin while maintaining a primary emphasis on elements that are important to Tesla customers, including the display.

The revamp is scheduled to become a component of production in Shanghai in the third quarter of 2023, while the Fremont factory will implement it at an indeterminate later date. The amount of money that will be saved due to the redesign has yet to be discovered.

The big picture: If the news is accurate, it may ease some of the concerns that critical initiatives at Tesla stock are not moving forward as quickly as anticipated owing to the fact that Elon Musk has been preoccupied with Twitter. Dan Ives, an analyst at Wedbush Securities, believes that Elon Musk has to persuade investors over the next weeks and months that the Twitter soap opera would not interfere with the longer-term growth narrative for Tesla (TSLA).

Concerns about COVID in China dragged down the price of numerous stocks produced there or have supply chains in the country, including Tesla stock, which dropped 1.77 percent in early trading on Monday.

Tesla is getting ready to make its first delivery of Semi trucks as it prepares to enter the Class 8 market.

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About the author: I'm a financial journalist with more than 3 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.