Tesla has been reported to be cutting production costs for the Model 3, with a new redesigned version in the works. The news comes to us from Reuters and will be one of the first thorougher reworkings of the car since the company launched it back in 2017 and will affect the exterior and powertrain performance of the car.

Reuters has also reported that the Shanghai Gigafactory will start production of the new redesigned model in the third quarter of 2023, the new model could also be made at Fremont too.

However, given that Tesla currently makes a $9,500 profit on every car it produces, it is unclear how much the company is planing to save as a result of the cost cutting and whether that will be passed onto the customer.