Tesla Inc. is unveiling the updated version of its Model 3 sedan during CEO Elon Musk's return to the carmaker's Shanghai factory, according to insiders. Prototypes of the new model will be the first cars off the assembly line on Thursday, insiders added, requesting anonymity due to the private nature of the Tesla's plans.
The revamped Model 3 is slightly longer and more sporty than its previous iteration, and features a sleeker interior design, as Bloomberg had earlier reported. The American EV maker is facing increasing pressure to refresh its product line in China, which is Tesla's largest sales market after the United States. Since the production of the original Model 3 began in 2017, there has been minimal changes to the design, and Chinese electric vehicle manufacturers, notably BYD Co., have been taking market share away from Tesla. In response, the US company has initiated sizable discounts that ignited a price war in the sector, lowering profitability across the industry.
Musk started his trip to China in Beijing, where he held a meeting with Jin Zhuanglong, the minister for industry and information technology, before heading to the Shanghai plant. This visit marks Musk's first trip to China in three years, and his presence has raised excitement among Tesla's Chinese fans and investors.