Tesla’s Model 3 is reportedly heading for a redesign

By Trevor Mogg Published November 30, 2022

Tesla is currently working on a redesign of the Model 3 in a bid to help the automaker reduce production costs, a new report claims.

Codenamed “Highland,” the project to revamp the Model 3 would cut the complexity and number of components inside Tesla’s electric car, four people claiming to have knowledge of the matter told Reuters this week. Changes to the Model 3’s exterior and powertrain performance are also possible, the report said.

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While the main goal of the reported redesign is to help the electric-car maker save money, it’s not clear if future customers will see any reduction in the vehicle’s price tag.

The new design, if it comes to fruition, will be produced at Tesla factories in Fremont, California, and Shanghai, China. The Shanghai plant may begin making the revamped vehicle in the third quarter of 2023, Reuters’ sources said, though a timeline for production at the Fremont factory was not forthcoming.

A redesign of the Model 3 wouldn’t be a big surprise considering how Tesla took a similar step last year with the relaunch of the 10-year-old Model S. The most striking change made to the Model S was the inclusion of a funky flat-bottomed, rectangular yoke in place of the traditional round steering wheel. It’s not clear if Tesla plans to include this in the reported redesign of the Model 3.

To be clear, Tesla has yet to officially announce any intention to overhaul the Model 3, but we’ll be sure to update if Tesla boss Elon Musk reveals such a plan.

In other Tesla news, Musk recently revealed that the automaker is working on an all-new, smaller electric car. Notably, the Tesla CEO said the new vehicle will be “about half the cost of the Model 3 and Y,” which could mean an eye-catching price tag of around $23,000.

Musk declined to offer a launch date for the new car, but said that the model is currently the “primary focus of our new vehicle development team.”

Contributing Editor

Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…

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Enthusiasts expecting to one day put their hands on the steering wheel of a $25,000 Tesla EV may feel like they’ve been taken for a ride.
CEO Elon Musk has just put a serious damper on those expectations, saying that outside of the driverless Robotaxi recently unveiled by Tesla, a regular $25,000 model would be “pointless” and “silly.”
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Tesla’s ambiguity about an affordable entry-level model has been going on for years. In 2020, Musk signaled that a $25,000 Tesla would arrive within three years. It was later reported that Tesla had ditched the idea, instead favoring the development of a robotaxi.
Language within Tesla’s latest financial report still hints that new affordable Tesla models are on the way. But Musk’s latest comments are putting a floor on just how affordable these would be. So far, Tesla’s Model 3 Rear-Wheel-Drive remains the company’s cheapest model, with a base price of $38,990.
Some rival EV makers, meanwhile, are entering the affordable space more aggressively in the U.S.
General Motors has already put out its Chevy Equinox EV at a price of $27,500, including federal tax credits. Volkswagen America says it plans to release an under-$35,000 EV in the U.S. by 2027.