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Elon Musk’s three prerequisites for a new Tesla Model 3 have been met

Musk debuted the production ready Model 3 on June 28 and handed over the first 30 vehicles.

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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:

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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.

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tesla model y production berlin

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.

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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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla is bailing out Canadian automakers once again: here’s how

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(Credit: Tesla)

Tesla is bailing out Canadian automakers once again, as some companies in the country are consistently failing to reach mandated minimum sales targets for emission-free vehicles.

Many countries and regions across the world have enacted mandates that require car companies to sell a certain percentage of electric powertrains each year in an effort to make sustainable transportation more popular.

These mandates are specifically to help reduce the environmental impacts of gas-powered cars. In Canada, 20 percent of new car sales in the 2026 model year must be of an emissions-free powertrain. This number will eventually increase to 100 percent of sales by 2030, or else automakers will pay a substantial fine — $20,000 per vehicle.

There is a way companies can avoid fines, and it involves purchasing credits from companies that have a surplus of emissions-free sales.

Tesla is the only company with this surplus, so it will be bailing out a significant number of other automakers that have fallen short of reaching their emissions targets.

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Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, said (via Yahoo):

“The only manufacturer that would have a surplus of credits is Tesla, because all they do is sell electric vehicles. A manufacturer has to enter into an agreement with them to purchase credits to help them meet the mandate.”

Tesla has made just over $1 billion this year alone in automotive regulatory credits, which is revenue acquired from selling these to lagging car companies. Kingstone believes Tesla could be looking at roughly $3 billion in credit purchases to comply with the global regulations.

Tesla still poised to earn $3B in ZEV credits this year: Piper Sandler

Automakers operating in Canada are not putting in a lack of effort, but their slow pace in gaining traction in the EV space is a more relevant issue. Execution is where these companies are falling short, and Tesla is a beneficiary of their slow progress.

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Kingston doesn’t believe the mandates are necessarily constructive:

“We’ve seen over $40 billion in new investment into Canada since 2020 and all signs were pointing to the automotive industry thriving. Now the federal government has regulations that specifically punishes companies that have a footprint here, requiring them to purchase credits from a company that has a minimal (Canadian) footprint and an almost nonexistent employee base.”

Kingston raises a valid point, but it is hard to see how Tesla is to blame for the issue of other car companies struggling to bring attractive, high-tech, and effective electric powertrains to market.

Tesla has continued to establish itself as the most technologically advanced company in terms of EVs and its tech, as it still offers the best product and has also established the most widespread charging infrastructure globally.

This is not to say other companies do not have good products. In my personal experience, Teslas are just more user-friendly, intuitive, and convenient.

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Tesla ditches key Cybertruck charging feature for very obvious reason

“Wireless charging something as far off the ground as the [Cybertruck] is silly.”

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Credit: Tesla

Tesla is officially ditching the development of a key Cybertruck charging feature, and the reason is very obvious, all things considered.

The Cybertruck is among the most unique vehicles available on the market, and, like all Tesla vehicles, it has continued to improve through Over-the-Air software updates that enhance performance, safety, and other technological features.

However, the development of some features, while great on paper, turns out to be more difficult than expected. One of these features is the presence of wireless charging on the all-electric pickup, a capability Tesla has been working to integrate across its entire vehicle lineup.

Tesla wireless charging patent revealed ahead of Robotaxi unveiling event

Most people who have used wireless charging for their phones or other devices have realized it is not as effective as plugging into a cord or cable. This is even relevant with Tesla vehicles, as the introduction of wireless charging for smartphones within the vehicles has been a nice feature, but not as impactful as many would hope.

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It’s not necessarily Tesla’s fault, either. Wireless charging is a complex technology because much of the energy intended to be transferred to the phone is lost through heat.

Instead of the energy being stored in the battery, it is lost on the outside of the phone, which is why it becomes warm to the touch after sitting on a charging mat.

This is something that Tesla is likely trying to resolve with its vehicles before rolling out inductive charging to owners. The company has confirmed that it is working on a wireless charging solution, but it has yet to be released.

However, this feature will not be coming to the Cybertruck. Wes Morrill, the Cybertruck’s lead engineer, said that the vehicle’s height makes wireless charging “silly,” according to Not a Tesla App:

“Wireless charging something as far off the ground as the CT is silly.”

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This is something that could impact future vehicle designs; the Cybertruck might not be the only higher-ground clearance vehicle Tesla plans to offer to customers. Therefore, being transparent about a design’s capabilities, or even developing technology that would enable this, would be useful to potential buyers.

At this point, wireless charging seems like it would be more advantageous for home charging than anything.

Due to its current inefficiency, it would likely be a great way to enable seamless charging in a garage or residential parking space, rather than something like a public charger where people are looking to plug and go in as little time as possible.

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Tesla China’s new six-seat Model Y L already sold out through October

New Tesla Model Y L orders now show an estimated delivery date of November 2025 at the earliest.

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Credit: Tesla China

Tesla’s new Model Y L is sold out for October in China, with new orders showing an estimated delivery date of November 2025 at the earliest. 

The extended-wheelbase variant, launched in August and first delivered this month, has quickly become one of Tesla’s strongest-selling vehicles in its key overseas market.

Demand and expectations

Tesla China initially positioned the Model Y L for September deliveries, with Vice President Grace Tao confirming on Weibo that the vehicle would begin reaching customers this September. True to that promise, the first handovers of the vehicle started last week. Since its launch, the six-seat crossover has sold out its September and October allocations, hinting at healthy demand.

Industry estimates suggested that Tesla received more than 35,000 orders for the Model Y L on launch day alone. While some Model Y L orders may overlap with those of the standard Model Y, industry watchers have noted that the six-seat, extended wheelbase variant is expanding the company’s total addressable market by appealing to car buyers who need more space and seating.

Credit: Tesla China

Tesla China boost

The Model Y L’s strong momentum is significant as Tesla navigates a competitive Chinese EV sector. With deliveries now stretching into November, the new crossover could potentially lift Tesla’s quarterly sales performance and help maintain its relevance in a market dominated by fast-moving domestic brands.

Beyond China, the extended-wheelbase Model Y L may also serve as a strategic export product for markets where larger family vehicles are in demand. Its early sellout performance suggests that Tesla has tapped into a new growth lever within its most successful vehicle lineup. With a starting price of RMB 339,000 ($47,180), after all, the Model Y L has the makings of a true bang-for-the-buck vehicle.

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