Photo: Jason Yang via YouTube
Tesla is currently ramping up production of two new models, the Cybertruck and the refreshed Model 3, also known as Project Highland. It looks like both of them will be unveiled simultaneously, although the Model 3 refresh might not have a dedicated delivery event. Instead, Tesla aims for a silent production switchover.
It looks like Tesla and Elon Musk really love challenges, as they have now deliberately created a "production hell." If you recall, this is how Elon Musk described the tough situation from 2017-2019, when Tesla launched the Model 3 and struggled to ramp up production. The electric sedan almost killed Tesla, as Musk admitted the company was "months away" from going bankrupt in 2019. Tesla raised new funds by hyping the Full Self-Driving during Autonomy Day in April 2019. The FSD is still in beta, but the Model 3 was saved, and now Tesla is reaping the benefits.
Probably that's the reason why Tesla is attempting two new launches at once, the Cybertruck and the refreshed Model 3. While the former is an entirely new product, Project Highland is not far behind in this regard. Experts following Tesla consider the refreshed Model 3 the most extensive overhaul Tesla ever attempted. Unlike the Model S/X refresh, which has seen only cosmetic changes, the Model 3 Highland has a new design and radically different technologies and materials.
Based on information from China, the refreshed Model 3 series production has already started, and Tesla is ramping up. A production ramp stress test is planned for August 25, allowing Tesla to see how far it can go. This means that Tesla will try to ramp up production as fast as possible to see where the supply chain or the production line break. That's an important step to identify and correct potential production problems before they affect operations. Tesla aims for a daily production of 1,200 units by early September.
Hundreds of covered Model 3 cars are stored in the parking lots at Giga Shanghai, waiting for delivery. This should happen as soon as the old model inventory is cleared. New information confirms the lower price point of the new model, around 200,000 yuan ($27,500). True or not, it's inevitable that this information will keep people from buying the old model, and it might affect the third-quarter results. They are already announced lower because Giga Shanghai and Fremont have been shut down in the quarter to upgrade the production lines.
If a new report from China is accurate, people might want to buy the current Model 3 while the stocks still last. Despite the pretty looks, the refreshed Model 3 will likely be dumber than expected. Instead of the Hardware 4 Autopilot computer and sensors, a new report claims that the new model will feature HW3.5. I don't know what this means and what parts remain unchanged. This is also weird, as Tesla appears to be out of HW3 parts in the US, as Model Y is also shipping with Hardware 4.
Probably that's the reason why Tesla is attempting two new launches at once, the Cybertruck and the refreshed Model 3. While the former is an entirely new product, Project Highland is not far behind in this regard. Experts following Tesla consider the refreshed Model 3 the most extensive overhaul Tesla ever attempted. Unlike the Model S/X refresh, which has seen only cosmetic changes, the Model 3 Highland has a new design and radically different technologies and materials.
Based on information from China, the refreshed Model 3 series production has already started, and Tesla is ramping up. A production ramp stress test is planned for August 25, allowing Tesla to see how far it can go. This means that Tesla will try to ramp up production as fast as possible to see where the supply chain or the production line break. That's an important step to identify and correct potential production problems before they affect operations. Tesla aims for a daily production of 1,200 units by early September.
Hundreds of covered Model 3 cars are stored in the parking lots at Giga Shanghai, waiting for delivery. This should happen as soon as the old model inventory is cleared. New information confirms the lower price point of the new model, around 200,000 yuan ($27,500). True or not, it's inevitable that this information will keep people from buying the old model, and it might affect the third-quarter results. They are already announced lower because Giga Shanghai and Fremont have been shut down in the quarter to upgrade the production lines.
If a new report from China is accurate, people might want to buy the current Model 3 while the stocks still last. Despite the pretty looks, the refreshed Model 3 will likely be dumber than expected. Instead of the Hardware 4 Autopilot computer and sensors, a new report claims that the new model will feature HW3.5. I don't know what this means and what parts remain unchanged. This is also weird, as Tesla appears to be out of HW3 parts in the US, as Model Y is also shipping with Hardware 4.
Highland project update:
— Tesla China Analyst (@teslashanghai) August 20, 2023
1. Appearance?The new model 3 looks overall very attractive, even more so than the Model S, especially the new headlights.
2. Production?The trial production phase has ended. Production ramp-up with stress testing will begin on August 25th. By early… pic.twitter.com/nk3Hc84X4F
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