Tesla is reportedly closing in on the trial production of its updated Model 3 sedan in China. The vehicle is expected to help Tesla retain and perhaps even grow its market share in the country, which is arguably the most competitive market for electric vehicles.
News of a Model 3 update in China has been around for some time. Earlier this year, Tesla China halted the production of the Model 3 in Gigafactory Shanghai to pave the way for updates to the vehicle’s line. At the time, it was heavily speculated that Giga Shanghai’s Model 3 updates would be similar to the long-rumored “Project Highland” Model 3 in the United States.
But while recent statements from Tesla China seem to shrug off rumors that Project Highland Model 3 units will be built at Giga Shanghai, it would appear that the facility would soon be producing an updated version of the all-electric sedan nonetheless.
Citing individuals reportedly familiar with the matter, Bloomberg News recently noted that the revised Model 3 in China would be slightly longer than the existing version of the vehicle. It will reportedly be sportier and feature a sleeker interior design as well. The publication’s sources opted to remain anonymous because the details of the vehicle are reportedly private.
Bloomberg‘s sources further noted that some production staff at Gigafactory Shanghai had been required to place their mobile phones in purpose-built lockers to prevent potential image leaks. This is quite understandable, considering that an image of an alleged Project Highland Model 3 unit was indeed leaked online. The leak, however, emerged in the United States.
Tesla has not provided a comment about the matter as of writing.
Prior to the best-selling Model Y, the Model 3 was Tesla’s most popular vehicle. Initially unveiled in 2016 and produced in 2017, the Model 3 was a huge learning experience for Tesla, thanks to the vehicle’s well-documented “production hell.” It was these learnings that ultimately allowed Tesla to develop its own mass manufacturing process for all-electric vehicles, which, in turn, allowed the Model Y crossover to experience a relatively smooth production ramp.
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New EV tax credit rule could impact many EV buyers
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.
After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.
However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.
Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.
🚨UPDATE: $7,500 Tax Credit Portal “Closes By End of Year”.
This is bad news for pending Tesla buyers (MYP) looking to lock in the $7,500 Tax Credit.
“it looks like the portal closes by end of the year so there be no way for us to guarantee the funds however, we will try our… pic.twitter.com/LnWiaXL30k
— DennisCW | wen my L (@DennisCW_) December 15, 2025
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.
However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.
This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.
Elon Musk
Elon Musk takes latest barb at Bill Gates over Tesla short position
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.
Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.
The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.
Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
— Elon Musk (@elonmusk) December 17, 2025
Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”
“Gates is a huge liar,” Musk responded.
It is not known whether Gates still holds his Tesla short position.
Tesla made a change to the Cybertruck, and nobody noticed. But to be fair, nobody could have, but it was revealed by the program’s lead engineer that it was aimed toward simplifying manufacturing through a minor change in casting.
After the Cybertruck was given a Top Safety Pick+ award by the Insurance Institute for Highway Safety (IIHS), for its reputation as the safest pickup on the market, some wondered what had changed about the vehicle.
Tesla makes changes to its vehicles routinely through Over-the-Air software updates, but aesthetic changes are relatively rare. Vehicles go through refreshes every few years, as the Model 3 and Model Y did earlier this year. However, the Cybertruck is one of the vehicles that has not changed much since its launch in late 2023, but it has gone through some minor changes.
Most recently, Wes Morrill, the Cybertruck program’s Lead Engineer, stated that the company had made a minor change to the casting of the all-electric pickup for manufacturing purposes. This change took place in April:
We made a minor change on the casting for manufacturability in April. Our Internal testing shows no difference in crash result but IIHS only officially tested the latest version
— Wes (@wmorrill3) December 17, 2025
The change is among the most subtle that can be made, but it makes a massive difference in manufacturing efficiency, build quality, and scalability.
Morrill revealed Tesla’s internal testing showed no difference in crash testing results performed by the IIHS.
The 2025 Cybertruck received stellar ratings in each of the required testing scenarios and categories. The Top Safety Pick+ award is only given if it excels in rigorous crash tests. This requires ‘Good’ ratings in updated small and moderate overlap front, side, roof, and head restraints.
Additionally, it must have advanced front crash prevention in both day and night. Most importantly, the vehicle must have a ‘Good’ or ‘Acceptable’ headlights standard on all trims, with the “+ ” specifically demanding the toughest new updated moderate overlap test that checks rear-seat passenger protection alongside driver safety.
New EV tax credit rule could impact many EV buyers
Elon Musk takes latest barb at Bill Gates over Tesla short position
