Tesla Stock Jumps 1.8% in Premarket Trading

Tesla is developing a revamped version of Model 3, according to Reuters, as the top EV maker aims to cut production costs and boost the appeal of the five-year-old electric sedan. Tesla stock jumps 1.85% in premarket trading.One focus of the redesign codenamed "Highland" is to reduce the number of components and complexity in the interior of the Model 3 while focusing on features that Tesla buyers value, including the display, according to the people, who asked not to be named because the revamp has not been announced.

The previously unreported redesign comes as the electric sedan faces increased competition from models from the likes of China's BYD, Hyundai and coming releases from other major automakers.

The revamp of the battery-powered sedan, which could also include some changes to the Model 3’s exterior and powertrain performance, will go into production at Tesla’s factory in Shanghai and the company’s Fremont, California plant, two of the people said. Tesla’s Shanghai Gigafactory will put the redesigned Model 3 into production in the third quarter of 2023, they said.

It was not clear when production would start at the Fremont plant or how large a cost savings Tesla would achieve from the redesign as it works with suppliers.