Model 3’s Project Highland

Reports are pointing to a new Tesla redesign project for its Model 3 sedan.

Codenamed "Project Highland", the redesign is going to be focusing on reducing the number of components, and complexity in the interior - as well as focusing on updating other features like the large "infotainment" display.

The reporting comes from news outlet Reuters, who says four sources close to the project confirmed the details of Project Highland, and asked not to be named, as the project hasn't been announced yet.

Extra details from these sources include mention of changes to the Model 3's exterior and powertrain performance - and that production should begin in the third quarter of 2023 at GigaShanghai and the company's facility in Fremont, California.

While these details are a little sparse, they do give us some clues as to what the redesign could be covering.

Take the mention of reducing the number of components for instance.

Back in 2021, Tesla introduced their Giga Press. These enormous machines were able to die-cast whole sections of a vehicle in one go, and they would be used to make the front and rear frame sections of the Model Y first.

They also introduced the structural battery pack which would also be used to make the Model Y.

But it looks like the other Tesla vehicles don't make use of either of these technologies - aside from the Cybertruck, which is due to begin production in 2023.

So it's not a stretch to think that a big part of the Model 3 redesign would focus on reducing the complexity of its construction - and we might even see the use of the structural battery pack with it.

But there's also that comment about the "complexity of the interior" being addressed.

The Model 3 is Tesla's cheapest vehicle, coming in at about $47,000 USD - and it's interior certainly doesn't have a lot of bells and whistles.

So it's hard to see how Tesla's going to simplify that, but they could be referring to updating the dashboard display and some of the interior flourishes - like they did for the Model S revamp in 2021.

The Model S was Tesla's flagship vehicle, and officially went into production in 2012. So when the company decided it needed to bring the car up to 2020's standards, no one was surprised.

The refreshed version launched in 2021 - alongside the Model S Plaid variant - and featured updated body panels, headlights and tail lights, and big changes to the interior that included swapping the steering wheel out for a more race-car-like yoke. Tesla also updated the dashboard screen to fit into the console horizontally, and updated things like the air vents to be more in line with the Model 3 and Y.

This followed Tesla's drive to make their designs more efficient - special steering wheels aside.

It was around this time that the Giga Press was being shown-off, and CEO Elon Musk remarked that the rear of the Model 3 "looks like a patchwork quilt" while praising the simplicity that the Model Y will enjoy by using this new casting method.

So, while Tesla’s goal of simplifying their designs means the Model 3 isn’t likely to get a big change to the interior style, industry watchers like Ed Kim of the AutoPacific Group point to the Model S rework - and the small changes that have kept the Model 3 up-to-date so far - as proof that "Tesla knows visually tangible changes are in order.” to keep Tesla in the minds of potential customers.

And that brings us to the comments about production beginning in Shanghai and Fremont,California help the veracity of the reporting - especially the mention of Shanghai.

Sales of the Model 3 in China fell about 9% in the first ten months of this year, as Tesla faced some of its first real competition in that market. According to the China Passenger Car Association, both BYD’s Qin and Han electric sedans sold better than the Model 3 during that period.

Aside from better production methods, that’s a pretty good incentive to update a design. And the approach works. Tesla’s push to eliminate unnecessary parts leads to them making more profit per unit. Toyota, for instance, makes roughly $1,300 USD per comparable electric vehicle sold versus Tesla’s roughly $9,500 USD.

With the news that Tesla plans to launch this updated Model 3 in Shanghai first, plus the recent drop in price for Chinese buyers in October - it’s pretty clear this is a move to not only keep the Model 3 in-line with Tesla’s newer products, but also to remain the kings of China’s EV market.