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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.
News
Tesla Diner to transition to full-service restaurant as Chef heads for new venture
“I am leaving the Tesla Diner project to focus on the opening of Mish, my long-desired Jewish deli. Projects like Mish and the Tesla Diner require a sharpness of focus and attention, and my focus and attention is now squarely on Mish.”
Tesla Diner, the all-in-one Supercharging and dining experience located in Los Angeles, will transition to a full-service restaurant in January, staff said, as Chef Eric Greenspan said he would take on a new project.
A report from the Los Angeles Times says Greenspan confirmed through a text that he would leave the Diner and focus on the opening of his new Jewish deli, Mish.
Greenspan confirmed to the paper:
“I am leaving the Tesla Diner project to focus on the opening of Mish, my long-desired Jewish deli. Projects like Mish and the Tesla Diner require a sharpness of focus and attention, and my focus and attention is now squarely on Mish.”
Greenspan took on the job at the Tesla Diner and curated the menu back in March, focusing on locally-sourced ingredients and items that would play on various company products, like Cybertruck-shaped boxes that hold burgers.
Tesla Cybertruck leftovers are the main course at the Supercharger Diner
The Tesla Diner has operated as somewhat of a self-serve establishment, where Tesla owners can order directly from their vehicles through the center touchscreen. It was not exclusive to Tesla owners. Guests could also enter and order at a counter, and pick up their food, before sitting at a booth or table.
However, the report indicates Tesla is planning to push it toward a sit-down restaurant, full of waiters, waitresses, and servers, all of which will come to a table after you are seated, take your order, and serve your food.
It will be more of a full-featured restaurant experience moving forward, which is an interesting move from the company, but it also sounds as if it could be testing for an expansion.
We know that Tesla is already considering expanding locations, as it will be heading to new areas of the country. CEO Elon Musk has said that Tesla will be considering locations in Palo Alto near the company’s Engineering HQ, and in Austin, where its HQ and Gigafactory Texas are located.
Musk said that the Diner has been very successful in its first few months of operation.
News
Tesla adds new surprising fee to Robotaxi program
“Additional cleaning was required for the vehicle after your trip. A fee has been added to your final cost to cover this service. Please contact us if you have any questions.”
Tesla has added a new and somewhat surprising fee to the Robotaxi program. It’s only surprising because it was never there before.
Tesla shocked everyone when it launched its Robotaxi platform and offered riders the opportunity to tip, only to tell them they do not accept tips. It was one of the company’s attempts at being humorous as it rolled out its driverless platform to people in Austin.
As it has expanded to new cities and been opened to more people, as it was yesterday to iOS users, Tesla has had to tweak some of the minor details of the Robotaxi and ride-hailing platforms it operates.
First Look at Tesla’s Robotaxi App: features, design, and more
With more riders, more vehicles, and more operational jurisdictions, the company has to adjust as things become busier.
Now, it is adjusting the platform by adding “Cleaning Fees” to the Robotaxi platform, but it seems it is only charged if the vehicle requires some additional attention after your ride.
The app will communicate with the rider with the following message (via Not a Tesla App):
“Additional cleaning was required for the vehicle after your trip. A fee has been added to your final cost to cover this service. Please contact us if you have any questions.”
The cost of the cleaning will likely depend on how severe the mess is. If you spill a soda, it will likely cost less than if you lose your lunch in the back of the car because you had a few too many drinks.
This is an expected change, and it seems to be one that is needed, especially considering Tesla is operating a small-scale ride-hailing service at the current time. As it expands to more states and cities and eventually is available everywhere, there will be more situations that will arise.
The messes in vehicles are not a new situation, especially in a rideshare setting. It will be interesting to see if Tesla will enable other fees, like ones for riders who request a ride and do not show up for it.
News
Tesla Model Y sold out in China for 2025
Customers who wish to get their cars by the end of the year would likely need to get an inventory unit.
It appears that the Model Y has been sold out for 2025 in China. This seems to be true for the four variants of the vehicle that are currently offered in the country.
Tesla China’s order page update
A look at Tesla China’s order page for the Model Y shows a message informing customers that those who wish to guarantee delivery by the end of the year should purchase an inventory unit. This was despite the Model Y RWD and Model Y L showing an estimated delivery timeline of 4-8 weeks, and the Model Y Long Range RWD and Model Y Long Range AWD showing 4-13 weeks.
As per industry watchers, these updates on the Model Y’s order page suggest that Tesla China’s sales capacity for the remainder of 2025 has been sold out. The fact that estimated delivery timeframes for the Model Y Long Range RWD and AWD extend up to 13 weeks also bodes well for demand for the vehicle, especially given strong rivals like the Xiaomi YU7, which undercuts the Model Y in price.
Tesla China’s upcoming big updates
What is quite interesting is that Tesla China is still competing in the country with one hand partly tied behind its back. So far, Tesla has only been able to secure partial approval for its flagship self-driving software, FSD, in China. This has resulted in V14 not being rolled out to the country yet. Despite this, Tesla China’s “Autopilot automatic assisted driving on urban roads,” as the system is called locally, has earned positive reviews from users.
As per Elon Musk during the 2025 Annual Shareholder Meeting, however, Tesla is expecting to secure full approval for FSD in China in early 2026. “We have partial approval in China, and we hopefully will have full approval in China around February or March or so. That’s what they’ve told us,” Musk said.
Tesla Diner to transition to full-service restaurant as Chef heads for new venture
Tesla adds new surprising fee to Robotaxi program
