AMIRZA786

God you suck

LeX2K

AMIRZA786

Elon Musk listed three prerequisites Tesla would have to accomplish before overhauling the Model 3’s design. They have now been met, and with reports of “Project Highland” funneling through the automaker’s future plans, the stage is set for a refresh of the company’s mass-market sedan.

In early 2021, Musk met with industry veteran and “Teardown Titan” Sandy Munro to discuss anything and everything related to Tesla. The meeting was catalyzed by Tesla’s developments in manufacturing efficiency, which was met with compliments and criticism when Munro, a 40+ year veteran of automotive engineering, tore down the Model Y. Questions regarding the Model 3, an obvious sibling of the Model Y, came to the surface, with Munro wondering when the sedan would receive improvements in its build.

The Model 3 was an elementary example of Tesla’s engineering prowess. The vehicle featured a chassis and frame with many parts, a technique that was improved upon with the Model Y. Tesla switched to a more efficient casting design that increased structural rigidity and safety, while eliminating excess parts and decreasing overall production time.

The Model 3 was always set to get these updates, though Musk walked on eggshells committing to when it would actually happen. As a result, Musk laid down a few ground rules that would need to be met before the Model 3 was overhauled and improved.

Musk said:

At some point, we probably will switch to a single-piece casting, but I think we need to get the Texas factory and the Berlin factory going. We do have an issue. It is hard to change the wheels on the bus when it is going 80 MPH down the highway. So, Model 3 is…well, was most of our volume. Model Y will exceed Model 3, but we just need an opportunity to redo the factory without blowing the cash flow of the company.”

“Project Highland” will reportedly reduce the number of components in the Model 3 while also focusing on improving important technology features, like infotainment.

TEXAS AND BERLIN FACTORIES

Gigafactory Texas and Gigafactory Berlin were in not yet producing or delivering cars when Musk met with Munro. Tesla was still dependent on just Fremont and Gigafactory Shanghai for its global automotive fulfillment, it had not launched in several countries it recently started delivering cars to, and Texas and Berlin had production start dates far from concrete.

Fast forward to late early December 2022, when reports of “Project Highland” first became public. Texas and Berlin are producing Model Ys, and customer deliveries have been going on for months.


While Berlin has been producing cars for a longer period than Texas, both are ramping adequately, according to Tesla’s delivery figures, which have continued to surge the company toward its first million-unit year.

While the production facilities are not fully ramped and have not yet reached full capacity, Musk didn’t say he needed Tesla’s two newest manufacturing plants to be churning out vehicles to their limit. He said they just needed to get them going, and they undoubtedly fit that description.

MODEL 3 CANNOT BE A MAJORITY OF TESLA’S VOLUME

The Model 3 was still Tesla’s best-selling vehicle in January 2021, and this would not change in the United States until June 2021 and in China until October 2021.

While the Model Y was a low-volume vehicle at the time but featured new vehicle technology and manufacturing techniques. The Model 3 was becoming outdated with every Model Y sale, and Musk always said the Y would be Tesla’s best-selling car and perhaps the most popular car on the planet.

It didn’t take long for the Model Y to overtake the Model 3, and now that it has been solidified as Tesla’s global best-selling car, the Model 3 can undergo quite a transformation. Recent images show a Model 3 with various panel covers, hiding what could be anything from new sensor designs, like what was uncovered by Electrek earlier this week, or a new manufacturing design that just isn’t ready to be unveiled quite yet.

It is quite evident the Model 3 is going to face some substantial changes, whether they are cosmetic or not remains to be seen. However, it is no coincidence that Musk’s plan to overhaul the Model 3 has suddenly become a reality as the conditions for a Model 3 overhaul have been met.

Tesla still has not confirmed in any way that it would redesign the vehicle. However, Musk did not deny the Reuters report, as he has publicly done in the past. Earlier this week, we reported Tesla was already preparing Fremont for new Model 3 production lines, and after manufacturer plates were spotted on the partially-hidden Model 3, all indications point toward a newly-realized design heading into 2023.
https://www.teslarati.com/elon-musk-...equisites-met/

lexusnyca

Unless the revamped 3 is significantly cheaper, it won't mean that much overall to the EV market (but will to Tesla's profitability per car, which is already sky high). The real issue is whether Tesla is just going to cede the $30-40K segment to the other manufacturers - if Tesla feels their brand is strong enough to command $50K+ for their most basic car, and let everyone else fight it out below that price point and see if they can make any sales numbers there and win any conquests from Tesla sales. I am just amazed at what people are paying for the Y, but they are doing it.

LeX2K

Chevy Bolt is under $30,000 looks like Tesla has already ceded.

AMIRZA786

As Lex mentioned, they have already ceded the lower end to Bolt and Leaf. They don't need that market, at least present time. The thing is, Y buyers are the same buyers who would buy a BMW, high end Audi or even a Lexus SUV. The reason I say this is I work with several people who own Model Y's, and if the Model Y didn't exist, they would own one of the brands I mentioned.

As far as the Model 3, in today's market I don't believe its that expensive, at least the RWD single motor model. My brother in law who also owns an Avalon hybrid XLE that his wife drives thinks his Model 3 is more of bargain, and I would agree

spwolf

All Teslas and other vehicles went up in price due to the cost of raw materials, so as they go down again, they will go down again as well.

We already had price drops in Europe but one more has to happen for price to go down to level when i got M3P in July 2021.

Tesla will not ceede any segment to anyone, as they now sell over 1.4m vehicles per year, they will need to expand their price ranges.

Pickup and semi will help, but they will have to expand range more to go over 2m in sales.

AMIRZA786

Well I'm hoping the price of the Model 3 goes down by the time I'm ready to buy one next year. That would be welcome news to me

JeffKeryk

I am a redesigned Model 3 buyer; make mine a Performance model so I can make life miserable for all the local exotics.
People suggesting the Model 3 should be cheaper are not very savvy business people. The Model 3 is the 5th biggest selling car int he world, of any kind. Margins are close to 30%. You want Tesla to shoot themselves in the foot?
Tesla has not ceeded anything to anyone. The 1st SEMIs are being delivered to Pepsi this month; the preorder backlog is huge. Ditto the (butt ugly) Cybertruk. There is even some Roadster rumors floating around...
Just how fast can Tesla run?

If and when the Model 2, or whatever it will be called, emerges, watch out world. My guess is, Tesla would not go to the expense of reengineering the Model 3 without strongly considering adding the cheaper car to the product line offerings.

AMIRZA786

I said "hoping". But no matter what, the performance is my next car

JeffKeryk

Mine too! I was planning on March of next year, but now I have to wait for the Highland.

mmarshall

How will that make the life of exotics miserable? First, their owners are driving what they want (and can afford), and you drive what you want....fair enough. Second, if you are referring to drag-races, people have no buisness doing that on public streets to start wth.

AMIRZA786

Shame on you @JeffKeryk ! No street racing . In all seriousness, mmarshall has a valid point. So shame on you!

JeffKeryk

Teasing and playing with big buck Porsches, etc with my little granola-head car is a blast. Ha ha ha! They are scared of Teslas, because they don't wanna look bad.

plex

iTrader: (11)

While I agree with you on no racing on public streets it happens all the time, especially with some of the exotics. On the way to and from local cars and coffee events, some of the exotics try to make their presence known and pick on others. 495 on Saturday mornings close to McLean VA for Katies cars and coffee is a prime example

Ha ha I've seen that first hand especially if a Plaid is rolling .