According to media reports, people familiar with the matter said that Tesla's revamped Model 3 could begin mass production as early as next month in Shanghai, and the price is said to be incredibly low.

The electric car leader is in the final stages of show car production, and the vehicles will be shipped to Tesla showrooms later this month, according to people familiar with the matter. Mass production will follow, starting as soon as September. Tesla will also ramp up production for the National Day holiday, these people added.

One of the people said that the revamped Model 3 has been changed both in terms of exterior design and interior components to make it more stylish. At full capacity, it will cost less than the current version of the Model 3, he added.

According to technology media Notebookcheck, quoting a Tesla insider "Chris Zheng" on Twitter, the mass production of the new Model 3 has begun in Shanghai Gigafacfactory, after Tesla's production decline in July was related to the production line upgrade.

Previously, Tesla CEO Musk revealed in the second quarter earnings call that Q3 production will be slightly lower than Q2, mainly due to the upcoming upgrade of Tesla's various factories, during the upgrade, some capacity may be idle.

Zheng said the initial monthly production capacity of the new Model 3 is set at 10,000 vehicles and may reach 7,000 vehicles in August.

Notebookcheck also reported that the revision will further reduce the number of parts and reduce the complexity of the interior, the use of integrated die casting process, coupled with the reduction of the number of parts planning, may reduce its production costs by up to 14%.

In 2017, Tesla launched the Model 3, a four-door all-electric compact sedan that has been very popular in the United States, China and Europe. But over time, it has faced increasing competitive pressure in its key markets.

On Monday, Tesla China's official website launched a limited-time incentive activity - from now to September 30, to order and complete the delivery of the Model 3 rear-wheel drive version of the current car, and purchase the corresponding car insurance through cooperative insurance institutions, users can enjoy 8,000 yuan insurance subsidies.

In addition, since August 14, the starting price of the Model Y long life version has been adjusted from 313,900 yuan to 299,900 yuan, and the Model Y high-performance version has been adjusted from 363,900 yuan to 349,900 yuan, and the price of both models has been reduced by 14,000 yuan.

As Tesla's two best-selling models, Model Y and Model 3 have been the pillars of Tesla's sales, of which Model Y sold 204,000 units in China in the first half of the year, and Model 3 sold 91,000 units.

However, the July data show that Tesla China's wholesale sales in the month were 64,285 vehicles, compared with 93,680 in June, down 31% from the previous month, becoming the lowest monthly sales of Tesla China since 2023, which is likely to make it continue to implement the "price for volume" market strategy。