Tesla retooling Fremont factory for Model Y, Model S refresh

The company is reportedly aiming to build the updated Model S in September.

Tesla is reportedly retooling its Fremont, California, factory to build the Model Y crossover and an updated Model S, employees have told CNBC.

Facing imminent direct competition from established automakers, Tesla is apparently hoping to begin Model Y production later this year. The Y is expected to eventually eclipse the Model 3 in sales volume, targeting the popular crossover segment and carrying a mass-market price tag.

The latest report suggests the refreshed Model S will feature a "minimalist" interior design and longer-range battery with 400 miles of range, potentially reinvigorating sales for the premium electric sedan.

Sources claim the Fremont factory will need to be reconfigured to build the Model S and X on the same production line, providing more space for the Model Y.

The revamped Model S is expected to begin rolling off the line in September, while the Model Y could take a few more months at least before production is ready to begin.

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