News
Elon Musk’s three prerequisites for a new Tesla Model 3 have been met
Elon Musk listed three prerequisites Tesla would have to accomplish before overhauling the Model 3’s design. They have now been met, and with reports of “Project Highland” funneling through the automaker’s future plans, the stage is set for a refresh of the company’s mass-market sedan.
In early 2021, Musk met with industry veteran and “Teardown Titan” Sandy Munro to discuss anything and everything related to Tesla. The meeting was catalyzed by Tesla’s developments in manufacturing efficiency, which was met with compliments and criticism when Munro, a 40+ year veteran of automotive engineering, tore down the Model Y. Questions regarding the Model 3, an obvious sibling of the Model Y, came to the surface, with Munro wondering when the sedan would receive improvements in its build.
The Model 3 was an elementary example of Tesla’s engineering prowess. The vehicle featured a chassis and frame with many parts, a technique that was improved upon with the Model Y. Tesla switched to a more efficient casting design that increased structural rigidity and safety, while eliminating excess parts and decreasing overall production time.
The Model 3 was always set to get these updates, though Musk walked on eggshells committing to when it would actually happen. As a result, Musk laid down a few ground rules that would need to be met before the Model 3 was overhauled and improved.
Musk said:
At some point, we probably will switch to a single-piece casting, but I think we need to get the Texas factory and the Berlin factory going. We do have an issue. It is hard to change the wheels on the bus when it is going 80 MPH down the highway. So, Model 3 is…well, was most of our volume. Model Y will exceed Model 3, but we just need an opportunity to redo the factory without blowing the cash flow of the company.”
“Project Highland” will reportedly reduce the number of components in the Model 3 while also focusing on improving important technology features, like infotainment.
Tesla developing revamped Model 3 under “Project Highland:” report
Texas and Berlin Factories
Gigafactory Texas and Gigafactory Berlin were in not yet producing or delivering cars when Musk met with Munro. Tesla was still dependent on just Fremont and Gigafactory Shanghai for its global automotive fulfillment, it had not launched in several countries it recently started delivering cars to, and Texas and Berlin had production start dates far from concrete.
Fast forward to late early December 2022, when reports of “Project Highland” first became public. Texas and Berlin are producing Model Ys, and customer deliveries have been going on for months.
Tesla Model Y production at Gigafactory Berlin (Credit: Tesla)
While Berlin has been producing cars for a longer period than Texas, both are ramping adequately, according to Tesla’s delivery figures, which have continued to surge the company toward its first million-unit year.
While the production facilities are not fully ramped and have not yet reached full capacity, Musk didn’t say he needed Tesla’s two newest manufacturing plants to be churning out vehicles to their limit. He said they just needed to get them going, and they undoubtedly fit that description.
Model 3 cannot be a majority of Tesla’s volume
The Model 3 was still Tesla’s best-selling vehicle in January 2021, and this would not change in the United States until June 2021 and in China until October 2021.
While the Model Y was a low-volume vehicle at the time but featured new vehicle technology and manufacturing techniques. The Model 3 was becoming outdated with every Model Y sale, and Musk always said the Y would be Tesla’s best-selling car and perhaps the most popular car on the planet.
It didn’t take long for the Model Y to overtake the Model 3, and now that it has been solidified as Tesla’s global best-selling car, the Model 3 can undergo quite a transformation. Recent images show a Model 3 with various panel covers, hiding what could be anything from new sensor designs, like what was uncovered by Electrek earlier this week, or a new manufacturing design that just isn’t ready to be unveiled quite yet.
It is quite evident the Model 3 is going to face some substantial changes, whether they are cosmetic or not remains to be seen. However, it is no coincidence that Musk’s plan to overhaul the Model 3 has suddenly become a reality as the conditions for a Model 3 overhaul have been met.
Tesla still has not confirmed in any way that it would redesign the vehicle. However, Musk did not deny the Reuters report, as he has publicly done in the past. Earlier this week, we reported Tesla was already preparing Fremont for new Model 3 production lines, and after manufacturer plates were spotted on the partially-hidden Model 3, all indications point toward a newly-realized design heading into 2023.
What do you think Tesla will bring to the table for the Model 3 redesign? If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
SpaceX Board has set a Mars bonus for Elon Musk
SpaceX has given Elon Musk the goal to put one million people on Mars.
SpaceX’s board approved a compensation plan for Elon Musk that ties his pay directly to colonizing Mars and building data centers in outer space. The details surfaced this week after Reuters reviewed SpaceX’s confidential registration statement filed with the Securities and Exchange Commission, making it one of the first concrete looks inside the company’s financials ahead of a public offering.
The pay package will reportedly award Musk 200 million super-voting restricted shares if the company hits a market valuation milestone, with the most ambitious targets going further. To unlock the full award, SpaceX would need to reach a $7.5 trillion valuation and help establish a permanent human settlement on Mars with at least one million residents. Additional incentives are tied to developing space-based computing infrastructure capable of delivering at least 100 terawatts of processing power.
SpaceX wins its first MARS contract but it comes with a catch
Long before SpaceX filed anything with the SEC, Elon Musk had already spent years framing Mars colonization as an insurance policy against human extinction. The philosophy traces back to at least 2001, when Musk first began researching Mars missions independently, before SpaceX even existed. By 2002 he had founded the company with Mars as the stated long-term goal.
In a 2017 presentation at the International Astronautical Congress, Musk outlined the specific vision that still underpins SpaceX’s architecture today. He described a self-sustaining city on Mars requiring roughly one million people to become viable, the same number now written into his compensation package.
SpaceX’s Starship, still in active development, was designed from the ground up to support the eventual colonization of Mars. Musk has stated publicly that getting the cost per ton to Mars below $100,000 is necessary to make mass migration economically feasible. Everything from Starship’s payload capacity to its full reusability targets flows from that single constraint. One can say that Musk’s latest compensation package has put a formal valuation on Mars for the first time.
SpaceX is targeting an IPO around June 28, Musk’s birthday, at a valuation of approximately $1.75 trillion. Between the Mars rover contract, the Golden Dome software group, Space Force satellite launches, and now a pay structure built around interplanetary colonization, SpaceX has become the single most consequential contractor in American space and defense. The IPO will put a public price tag on all of it for the first time.
Earlier this week, we wrote a story on how Tesla is launching a new Supercharging Queue system to mitigate problems between drivers when there is a wait to charge.
Rather than potentially having people end up in a physical conflict, Tesla’s approach is to determine who is next to charge based on geographic data.
Tesla launches solution to end Supercharger fights once and for all
But some companies, notably Tesla’s biggest rival in China, BYD, are taking a different approach, focusing on charging speeds rather than how they will manage delays.
BYD’s approach, especially with its tests of ultra-fast “Flash Charging” technology, is to eliminate the length of a charging session. At the heart of this strategy is BYD’s second-generation Blade Battery paired with 1,500-kW Flash Chargers.
Real-world FLASH Charging in action.
⚡ 10% → 70% in 5 minutes
⚡ 10% → 97% in 9 minutesIntroducing BYD’s 2nd Generation Blade Battery + FLASH Charging Technology.
20,000 stations will bring faster, safer, and smarter EV charging across China by the end of 2026. pic.twitter.com/uzQC8q1xGf
— BYD (@BYDCompany) March 9, 2026
Unveiled earlier this year, the system charges compatible vehicles from 10 percent to 70 percent state of charge in just five minutes and from 10 percent to 97 percent in nine minutes.
Real-world demonstrations on models like the Yangwang U7 and Denza Z9 GT have shown the tech delivering roughly 250 miles (400 kilometers) of range in just five minutes. This would essentially match or beat the time it takes to fill a gas tank.
Sometimes, gas pumps get congested, and there are lines. You rarely see conflicts at pumps because filling up a tank rarely takes more than five minutes.
Tesla’s fastest Supercharger build currently is the v4, which can deliver up to 325 kW for Cybertruck and 250 kW for other models, but there are “true” sites that are capable of up to 500 kW. This enables speeds of up to 1,000 miles per hour, or 1,400 miles for 350 kW-capable vehicles.
The breakthrough stems from BYD’s vertically integrated ecosystem: a new 1,000-volt architecture, 10C charging rates, and proprietary silicon-carbide chips that minimize internal resistance while protecting battery health.
The company plans to install 20,000 Flash Charging stations across China by the end of 2026, with thousands already operational and global expansion eyed for Europe and beyond later this year.
Early rollout targets popular models, including upgrades to high-volume sellers like the Seal and Sealion series, bringing five-minute charging to mainstream prices around 100,000 yuan (about $14,000).
This approach contrasts sharply with Tesla’s software solution. Tesla’s Virtual Queue uses geofencing and the app to assign turns at crowded sites, addressing driver disputes and idle time. It’s a clever fix for today’s network realities.
Yet, BYD’s philosophy is simpler: make charging so fast that waits barely exist. A five-minute stop becomes as convenient as a gas-station visit, reducing station dwell time, easing grid strain, and lowering range anxiety for long trips.
For consumers, the difference is potentially tangible. They’ll spend more time driving and less time parked. It is just another way Tesla and BYD are pushing one another to improve the overall experience of EV ownership.
News
Tesla wins big as NHTSA drops three-year, 120k unit probe against Model Y
In all, 120,089 Model Ys were impacted, but in two cases, drivers reported the complete detachment of the steering wheel from the steering column while the vehicle was in motion. NHTSA’s initial review revealed that the vehicles had been delivered without the critical retaining bolt that secures the steering wheel to the splined steering column.
A probe into over 120,000 2023 Tesla Model Y units has been closed by the National Highway Traffic Safety Administration (NHTSA). The probe ends without the agency requiring any action from Tesla.
The probe, designated PE23-003, opened in March 2023 and stemmed from just two consumer complaints involving low-mileage Model Y SUVs.
In all, 120,089 Model Ys were impacted, but in two cases, drivers reported the complete detachment of the steering wheel from the steering column while the vehicle was in motion. NHTSA’s initial review revealed that the vehicles had been delivered without the critical retaining bolt that secures the steering wheel to the splined steering column.
NHTSA has ended a probe into over 120,000 Tesla Model Y vehicles after claims that the steering wheel could detach from the steering column due to a missing retaining bolt
There is no action needed by Tesla pic.twitter.com/YpAO3bKugA
— TESLARATI (@Teslarati) April 28, 2026
Factory records showed each car had undergone an “end-of-line” repair at Tesla’s facility, during which the steering wheel was removed and reinstalled. The bolt was apparently omitted after the repair, leaving only a friction fit between the wheel and column to hold it in place temporarily.
According to NHTSA documents, this friction fit maintained the connection during initial low-mileage driving until forces during normal operation caused the wheel to detach. Both vehicles that were impacted were repaired under warranty with no injuries reported, and no additional incidents surfaced during the agency’s three-year review.
After analyzing manufacturing processes, complaint data, and field reports, NHTSA concluded the issue was isolated to those two post-repair vehicles rather than indicative of a systemic defect in Tesla’s production or quality control.
The closure means the agency has determined no recall or further enforcement is warranted for this specific missing-bolt condition.
This outcome marks the second NHTSA investigation into Tesla closed without action this month, as a recent probe into the company’s “Actually Smart Summon” feature was also resolved in April.
The two resolutions provide some relief for Tesla amid the continuous and somewhat unfair regulatory scrutiny of its vehicles, including open inquiries into driver assistance systems.
Importantly, the closed probe does not involve or affect Tesla’s separate May 2023 voluntary recall of certain 2022-2023 Model Y vehicles. That recall addressed a different issue—steering-wheel fasteners that were installed but not torqued to specification—prompted by a service technician’s observation of a loose wheel during unrelated repairs.
Tesla identified a small number of related warranty claims and proactively addressed the matter without NHTSA mandate.
The Model Y remains one of the world’s best-selling vehicles, and Tesla continues to refine its lineup, including the recent “Juniper” refresh. While federal oversight of the electric vehicle pioneer remains intense, this decision underscores that isolated manufacturing anomalies do not always translate into broader safety defects requiring recalls.
SpaceX Board has set a Mars bonus for Elon Musk
Tesla’s biggest rivals fights charging wait times with a modern approach
