The Highland version of the Model 3 is expected to go into production in Shanghai in September, while is also preparing a production revamp of the Model Y with the internal codename Juniper, according to Reuters.

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Tesla is expected to begin production of the new Model 3 sedan at its Shanghai plant in the fall, and its hot-selling SUV, the Model Y, will also see a revamped version, a new report said.

Tesla is already working to retool its Shanghai assembly plant for a revamped version of the Model 3, a project codenamed Highland, according to a Reuters report today.

The Highland version of the Model 3 is expected to go into production in Shanghai in September, the report said, citing a person familiar with the matter.

With Highland, Tesla aims to cut production costs and boost the appeal of the electric sedan, which debuts in 2017, people involved in the project said.

Appearance and powertrain performance will also be changed, with a focus on production efficiency, they said, according to the report.

Giga Shanghai is Tesla's largest plant in the world, producing the Model 3 and Model Y, with an annual capacity of about 1.1 million vehicles.

Including exports of 39,208 units, Tesla sold 66,051 China-made vehicles in January, according to data released earlier last month by the China Passenger Car Association (CPCA).

In China, Tesla delivered 26,843 vehicles in January, including 12,659 Model 3s and 14,184 Model Ys.

On February 15, Bloomberg reported that Tesla will halt some production at its Shanghai plant until the end of February as it upgrades the factory to begin rolling out a revamped version of the Model 3 in the Chinese market.

Tesla has been upgrading its production line in stages for the past two months, and deliveries of the new Model 3 are expected to begin later this year, Bloomberg previously reported.

In addition to the Highland version of the Model 3, the Reuters report also mentioned that Tesla is preparing a production makeover for the Model Y.

The changes to the Model Y -- which Tesla has codenamed Project Juniper -- involve the exterior and interior of the SUV, with the goal of starting production in 2024, according to the Reuters report.

Tesla has separately solicited quotes from suppliers for exterior and interior components for the Juniper version of the Model Y, which would go into production next year, the report said, citing two people familiar with the matter.

Production is expected to begin in October 2024, according to the report.

Tesla to halt production at Shanghai plant for more upgrades to produce new Model 3, report says