Tesla Model 3 production slows ahead of update later this year – report

Production of the Tesla Model 3 electric car may scale back in the coming weeks to prepare for an updated model, according to a new report.

Unnamed sources cited by business news outlet Bloomberg claim Tesla is upgrading its Model 3 production line in China – where Australian cars are built – to prepare for an upgraded model due "later this year".

The Bloomberg news follows a report from news agency Reuters late last year, which claimed an updated Tesla Model 3 was planned for launch between July and September 2023 – with a focus on reducing parts and making the car cheaper and easier to build.

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It was believed at the time the update would focus on interior changes – including the car's large central touchscreen – however there may also be upgrades to the technology and exterior design, if the sighting of test cars wearing masks are a guide.

Comments by Tesla design boss Franz von Holzhausen in January 2023 suggested an exterior update for the Model 3 is unlikely, however the executive's comments only appear to rule out a major overhaul, rather than subtle changes.

According to Bloomberg, production of the current model is slowing while the upgrades are completed by the "end of February", which have been implemented in stages "over the past two months".

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The news outlet reports Tesla's Shanghai, China, factory has two phases of manufacturing and "some workers on the first phase won’t be allowed on production lines from as soon as Sunday".

Local news reports note the production line is believed to be merely slowing – rather than paused – while the upgrades are completed.

It is unclear when the Tesla Model Y SUV – which is related under the skin to the Model 3, and built in the same factory – will receive the same upgrades.

The upgrades to the Model 3's production line follows a pause on assembly of the Model 3 and Model Y in mid-2022, as the factory was improved to boost output to about 14,000 Model Ys and 7700 Model 3s per week.

Tesla is yet to confirm plans for the updated Model 3, however what are believed to prototypes of the new vehicle have been spied testing in the US in recent months.

If production begins in China between July and September 2023, it could arrive in Australia by the end of this year – however this is not confirmed.