Three individuals knew the plan and claimed that Tesla (TSLA.O) was ready to revamp its best-selling Model Y production.
According to two people who asked to remain anonymous because the planning is ongoing, the Model Y changes, which are code-named Project Juniper at Tesla, affect both the exterior and interior of the crossover electric vehicle to ramp up production in 2024.
A Model Y redesign would put Tesla on track to release new versions of its best-selling models over the next two years, addressing pressure in markets such as China and the United States for a noticeable reboot of its best-selling vehicles in the midst of growing EV buyer options.
Tesla to launch new editions of best-selling vehicles
The carmaker hasn’t mentioned its product strategy or any upcoming model changes. When questioned by Reuters about the Model Y, the company’s best-selling vehicle in California, China, and Europe last year, Tesla did not respond immediately.
A Model Y would put Tesla on track to launch new editions of its best-selling models over the next two years, mentioning market pressure in China and the United States for a visible remake of its best-selling vehicles in the midst of expanding EV buyer options.
The automaker has not released any information about its product strategy or upcoming model changes.
Tesla did not respond when Reuters asked about the Model Y, the company’s top-selling vehicle in California, China, and Europe last year.
According to those involved in the project, Tesla’s goal with Highland is to reduce production costs while increasing the appeal of an electric sedan that first went on sale in 2017.
They also stated that there would be adjustments to the exterior and powertrain performance, focusing on production efficiency.
Two people said Tesla has separately requested quotes from suppliers for a remastered version of the Project Juniper version of the Model Y for interior and exterior parts that will go into manufacturing next year.
According to one of the people, the estimated beginning of production is October 2024.
Tesla’s long-term planned expansion
Tesla has said that at its investor day event on Wednesday at its Gigafactory in Texas, it will give details about its next-generation vehicle platforms, which Musk has said will produce a vehicle at half the cost of Tesla’s current vehicle underpinnings.
Tesla also stated that it would discuss long-term planned expansion, capital allocation, and other topics.
Even after cutting prices, the leading EV manufacturer has encountered growing competitive pressure in China, its second-biggest market after the United States.
Analysts believe this is partly due to its perceived lag in introducing new models, improved navigation, or luxe interior touches that car buyers in the world’s largest EV market desire.
A redesign of the Model Y, which was first delivered to customers in 2020, would imply changes to production and supply for a vehicle that is now manufactured in all of Tesla’s significant hubs: the United States, China, and Germany.
Unlike legacy automakers, which typically make incremental model modifications to cars before bringing an all-new version, Tesla has increased the rate of change in its electric vehicles.
Multiple changes in Tesla vehicles
According to analysts, Tesla has made numerous changes to its electric vehicles through software upgrades and sometimes hardware changes to add functionalities, improve performance, or reduce production costs.
In one case, Tesla announced on Wednesday that it had changed the suspension system on the Chinese-made Model Y since January to make the ride smoother, an update that Tesla fans applauded on social media.
According to the company, Tesla’s plant near Berlin set a new production record earlier this week, equivalent to an annual output of over 200,000 Model Ys.
