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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 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 analyst compares Robotaxi to Waymo: ‘The contrast was clear’

“In short, robotaxi felt like a more luxurious service for half the cost and the driving felt more human-like.”

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Credit: Tesla

Tesla analyst Jed Dorsheimer of Wall Street firm William Blair compared the company’s Robotaxi platform to Waymo’s driverless ride-sharing program, and had a clear-cut consensus over which option was better in terms of rider experience.

Dorsheimer visited Austin recently to ride in both Tesla’s Robotaxi ride-sharing program and Waymo, which has operated slightly longer than Tesla has in the city. Tesla started rides on June 22, while Waymo opened its vehicles to the public in March.

A Tesla Model Y L Robotaxi is a legitimate $47k Waymo killer

The analyst gave both platforms the opportunity to present themselves, and by the end of it, one was better than the other in terms of rider experience. However, he noted that both platforms gave safe and smooth rides.

Overall, there was a tremendous difference in the feel and environment of each option.

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Tesla Robotaxi vs. Waymo

Dorsheimer said that Tesla’s first big advantage was vehicle appearance. Robotaxi uses no external equipment or hardware to operate; just its exterior cameras. Meanwhile, Zoox and Waymo vehicles utilize LiDAR rigs on their vehicles, which made them “stick out like a sore thumb.”

“In contrast, the robotaxis blended in with other Teslas on the road; we felt inconspicuous flowing with the traffic,” he added.

The next big victory went in the way of Robotaxi once again, and it concerned perhaps the most important metric in the ridesharing experience: price.

He continued in the note:

“Confirming our thesis, robotaxi was half the price of Uber, showing its ability to win market share by weaponizing price.”

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In terms of overall performance, Dorsheimer noted that both platforms provided safe and “top-notch” experiences. However, there was one distinction between the two and it provided a clear consensus on which was better.

He said:

“In Austin, we took multiple robotaxi and Waymo rides; the contrast was clear. Aside from the visual difference between each pulling up to the curb, the robotaxi was comfortable and familiar, and it felt as though a friendly ghost chauffeur was driving our personal car. Driving was smooth and human-like, recognizing and patiently waiting for pedestrians, switching into less crowded lanes, patiently waiting to execute a safe unprotected turn, and yet, discerning and confident enough to drive through a light that just turned yellow, so as not to slam on the brakes.

Waymo also provided a top-notch service, and we did not encounter any safety concerns, but if we were to be overly critical, it felt more … robotic. In the cabin, you have to listen to an airline-esque preamble on Waymo and safety protocols, and during the ride, you can hear all the various spinning lidar sensors spooling up and down with electronic whizzing sounds.”

Tesla Robotaxi provides an experience that seems to be more catered toward a realistic ride experience. You can control the music, the cabin temperature, and transitioning your travel from one vehicle to the next during a trip will continue your entertainment experience.

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If your first trip ends in the middle of a song, your next trip will pick up the music where it left off.

Meanwhile, Waymo’s experience sounds as if it is more focused on rider expectations, and not necessarily providing a ride that felt catered to the occupants. Still, what’s important is that both platforms provided safe rides.

Dorsheimer ended the note with one last tidbit:

“In short, robotaxi felt like a more luxurious service for half the cost and the driving felt more human-like.”

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Tesla offers new deal on used inventory that you won’t want to pass up

Tesla opened up lease deals on used Model 3 and Model Y inventory in California and Texas on Tuesday, marking the first time it has launched the option on pre-owned cars.

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Credit: Tesla

Tesla is offering a new deal on its used vehicle inventory that consumers looking for a great deal won’t want to pass up.

Traditionally, Tesla has not allowed potential car buyers to lease its used inventory. The only two options were to buy with cash or finance it through Tesla or a bank.

However, with the elimination of the $7,500 new and $4,000 used EV tax credits, Tesla is breaking its own rules and is now offering lease deals on its used vehicle inventory, but only in a couple of states, as of right now.

Tesla is ready with a perfect counter to the end of US EV tax credits

Tesla opened up lease deals on used Model 3 and Model Y inventory in California and Texas on Tuesday, marking the first time it has launched the option on pre-owned cars.

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The deals are tremendous and can cost as little as $0 down and under $225 per month for some vehicles.

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Tesla also allows customers to buy the vehicle at the end of their lease deal, which enables some really great ways to end up an owner of the car you plan to drive for the next two or three years.

The lease deal also helps Tesla rid itself of older vehicles that might not be of future use to the company. It formerly planned to use leased vehicles in its eventual Robotaxi fleet, but many of the cars in its used inventory have Hardware 3, which is less capable than Hardware 4, which is installed in the new Model 3 and Model Y.

More importantly, Tesla is giving people yet another way to be in the market for a Tesla before the tax credit ends on September 30.

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Tesla Model Y L might not come to the U.S., and it’s a missed opportunity

The Model Y L has a variety of big changes that would be advantageous for the U.S. market, including a longer wheelbase, more comfortable seats, a third row that appears to be more spacious than Tesla’s six-seat Model Y that it previously offered, B-Pillar vents for rear passengers, and more.

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Credit: Tesla China

Tesla’s new Model Y L might not come to the U.S., CEO Elon Musk said this morning.

It’s a missed opportunity, and I’m not the only one who feels this way.

In the past, I have personally written a handful of articles about what Tesla owners have been wanting in the United States: a full-sized SUV, or at least a vehicle that is larger than the Model Y but less of a crossover than the Model X.

Tesla is missing one type of vehicle in its lineup and fans want it fast

The only thing that Tesla has announced that even slightly matches this sort of idea is the Robovan, which is, optimistically, several years off because it lacks a steering wheel and pedals and will require Full Self-Driving to be fully autonomous.

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Even if Tesla launches FSD next year, it will take a year or two to figure out manufacturing, go through regulatory hurdles with the EPA, and eventually enter mass production for customers.

The Model Y L has a variety of big changes that would be advantageous for the U.S. market, including a longer wheelbase, more comfortable seats, a third row that appears to be more spacious than Tesla’s six-seat Model Y that it previously offered, B-Pillar vents for rear passengers, and more.

However, Musk said it won’t come to the U.S. until next year, and that it “might not ever, given the advent of self-driving in America.”

To be blunt, I’m not sure if I truly believe that Musk thinks the Model Y L won’t come to the U.S. Some believe he said this to not Osborne Effect Model Y sales here, which seems more likely than anything.

Tesla Model Y L gets disappointingly far production date in the United States

People have been buying the Model Y for two years more than any other car in the world. To act as if many families would not appreciate the extra space seems very strange; a big complaint with the Model Y is that it simply does not fit larger families.

If you have four kids, you’re forced into the Model X, which might be too expensive for some families, as it starts at $79,990.

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While Tesla’s focus is undoubtedly on autonomy, it is important to remember that some people still really enjoy the act of driving their cars. Tesla has worked very hard to create a fun and sporty driving experience, especially in the new Model Y. Many consumers, including myself, like to take advantage of that.

Autonomy might eventually take over human driving completely, but in the near term, it does not seem as if that is the case. Even if someone were interested in never driving again, this longer and more spacious Model Y L would be an ideal option for American families that need the room for at least six passengers.

Quite a few big names in the Tesla community share this sentiment:

More than likely, Musk does not want to announce a more attractive option than the current Model Y, as many consumers would likely wait a year or two for the L in an effort to have more space.

In all honesty, I see the Model Y L coming to the United States, as it truly fits the bill as an ideal car for the modern American family.

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