Tesla's Fremont Factory Being Revamped to Build the New Model Y and a Refreshed Model S, Reports Say

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【Summary】Tesla's Fremont facility has been chosen to produce the new Model Y electric SUV and the refreshed Model S sedan

Manish Kharinta    Jun 01, 2019 11:45 AM PT
Tesla's Fremont Factory Being Revamped to Build the New Model Y and a Refreshed Model S, Reports Say
Tesla's Fremont, California assembly plant

Last week, Tesla slashed the prices of its Model S and X vehicles by $3,000 and $2,000 respectively as the two models are experiencing slowing sales. The automaker also unveiled a free supercharging incentive to entice new the customers.

In April, Tesla upgraded both cars with a software update to improve the electric driving range and charging speeds.

Now rumors are floating around that suggest there is a refreshed Model S currently under development. The restyled electric sedan, on sale in its current form since 2012, is reportedly set to enter production later this year in September.

Sources at Tesla claim that the refreshed Model S will feature a sparse new interior similar to the one found in the mass-market Model 3.

The new Model S is rumored to feature a more minimalist interior and will offer an improved driving range. If true, these latest initiatives by Tesla will increase expenses for the electric carmaker, but will also help it capitalize on the fast-growing popularity of luxury SUVs.


The Tesla Model Y SUV is a compact electric crossover.

Refreshing its flagship sedan is likely Tesla's attempt at maintaining the relevance and growing the market share of its offering, as the auto industry is experiencing a declining sedan sales trend in favor of SUVs and crossovers.

The company laid off employees involved in Model X and S production in January and Tesla is now limiting production to only day shifts during the week and stopped manufacturing operations on the weekends and during night-shifts.

The Model Y Will Reportedly be Built in Fremont

Reports also claim that the company's Fremont, California factory has been chosen to produce the new Model Y SUV crossover alongside the refreshed Model S. In order to meet the production requirements of these vehicles, Tesla is retooling it's Fremont assembly plant.

Rumors are surfacing that Tesla has already begun placing orders for the equipment needed to build the Model Y SUV in Fremont.

However, Tesla has not announced any such plans officially.

Industry insiders claim that Tesla will need to combine the Model S and Model X production lines in order to accommodate the production of Model Y.

This will be a daunting task for Tesla, as both Model S and X require several specifically designed parts, such as the complex falcon wing doors of Model X.

In another cost-cutting move, It's being said that the new Model S will also share its seats and electric powertrain with the Performance variants of Model 3, along with an updated battery pack offering 400 miles of range on a full charge.

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