Tesla Prepares Model 3 ‘Highland’ Refresh at Giga Shanghai: Report

Tesla is planning to pause some production until the end of February, in order to upgrade its lines in preparation for the Model 3 “Highland” project, according to a report from Bloomberg on Wednesday.

Workers will be prevented from entering some production line areas as soon as Sunday, according to the report.

The areas of the Giga Shanghai that produce Model 3 and Model Y have seen upgrades in stages over the past two months, claim sources.

Tesla’s development of a simplified Model 3, dubbed “Highland,” was reported back in November. The vehicle is expected to enter production at both Tesla’s Gigafactories in Shanghai, China and Fremont, California in the U.S.

The news comes after Tesla dropped prices on its cars in markets worldwide, effectively lodging a “price war” against other automakers. In weeks since, rivaling legacy and startup automakers have had to decide whether to cut prices in response to Tesla, reducing profit margins, or to risk losing out on consumer interest.

A Tesla executive in China said last month that the automaker’s current lineup was not enough to meet consumer demand, adding that rivals offered even more limited options to buyers.