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Tesla developing revamped Model 3 under “Project Highland:” report

Mariordo (Mario Roberto Durán Ortiz), CC BY-SA 4.0 , via Wikimedia Commons

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Recent reports have emerged suggesting that Tesla is developing a revamped version of its best-selling all-electric sedan, the Model 3. The revamp, which is reportedly codenamed “Project Highland,” is part of the EV maker’s efforts to cut production costs on the vehicle while boosting its appeal to consumers. 

The Tesla Model 3 has been in the market for several years now, and while the vehicle underwent a refresh back in October 2020, most of the changes that were implemented then were relatively minor. These included a new center console, new door panels, a power trunk, new wheels and headlights, and a number of other iterative changes. 

Citing several individuals reportedly familiar with the matter, Reuters noted that “Project Highland” would involve improvements to the Model 3 that would reduce the number of the car’s components and the complexity of its interior. The revamp will reportedly also focus on features that Tesla buyers value the most, such as the infotainment system. 

The publication’s sources noted that the Model 3 revamp would also include some updates to the Model 3’s exterior and powertrain performance. The updated all-electric sedan would reportedly go into production at the Fremont Factory and Gigafactory Shanghai, the Tesla plants where the Model 3 is currently being produced. As per Reuters‘ sources, the redesigned Model 3 should be put into production in Q3 2023. 

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The improvements that were hinted at by the publication’s sources suggest that Tesla would likely implement some of the innovations that have been introduced on the Model Y to the Model 3. So far, the Model Y has been ramped in several factories with key innovations such as front and rear megacasts. Units made in Giga Texas are even equipped with the company’s structural battery packs. Considering that both the Model Y and Model 3 are Tesla’s mass-market cars, it would not be surprising if the all-electric sedan’s revamp involves innovations such as the use of megacasts and structural battery packs as well. 

It should be noted, however, that the Model 3s today have already gone through numerous improvements over the years. Thus, even if the vehicle looks the same as before, its software and hardware have already been improved. However, Ed Kim, president of AutoPacific Group, noted that consumers would likely appreciate changes to the Model 3 that are visually evident.

“Consumers still tend to equate visual changes with newness. Tesla knows visually tangible changes are in order. The upcoming changes that potential customers can see and feel will be very important in ensuring that EV customers still have Tesla at the top of their minds as truly excellent alternatives to Tesla are starting to flood the market,” Kim said. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla begins Grok AI chatbot rollout to Australia and New Zealand fleet

The update follows earlier deployments in the United States and Europe.

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Credit: Tesla

Tesla has rolled out its Grok AI assistant to Australia and New Zealand, embedding the conversational chatbot directly into compatible vehicles via an over-the-air update. 

The system, developed by Elon Musk’s xAI, is now live on select models, giving drivers access to a voice-based assistant that goes well beyond traditional command-driven controls.

The update follows earlier deployments in the United States and Europe.

Tesla Australia confirmed Grok is available on Model S, Model 3, Model X and Model Y vehicles equipped with an AMD processor and running software version 2025.26 or later.

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“Grok is coming to Teslas in Australia and New Zealand. It can answer almost any question using real-time information & also add/edit navigation destinations to become your personal guide. Phased rollout has now begun to eligible vehicles,” Tesla Australia and New Zealand wrote in a post on its official X account.

Drivers can activate Grok using the steering wheel controls once the update is installed. Access requires either a Premium Connectivity subscription or a stable Wi-Fi connection.

Unlike conventional in-car voice assistants that rely on fixed prompts, Grok is designed to respond conversationally. It can adjust navigation mid-trip, locate nearby points of interest, explain dashboard warnings, provide driving guidance and reference the owner’s manual. 

Tesla noted that interactions with Grok are processed by xAI and remain anonymous to Tesla, adding that conversations are not linked to a specific driver or vehicle.

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Grok has attracted attention overseas for offering multiple interaction modes. In the U.S., users can select personalities such as Assistant, Language Tutor, Therapist, Storyteller and Meditation. Additional optional modes for adult users include settings labeled Unhinged, Motivation, Argumentative, Romantic and even Sexy.

Viral clips shared online have shown Grok adopting sarcastic or playful tones that differ from more neutral digital assistants, with the AI assistant typically catching drivers off-guard with its sharp personality and wit. 

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Ford is charging for a basic EV feature on the Mustang Mach-E

When ordering a new Ford Mustang Mach-E, you’ll now be hit with an additional fee for one basic EV feature: the frunk.

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Credit: Ford Motor Company

Ford is charging an additional fee for a basic EV feature on its Mustang Mach-E, its most popular electric vehicle offering.

Ford has shuttered its initial Model e program, but is venturing into a more controlled and refined effort, and it is abandoning the F-150 Lightning in favor of a new pickup that is currently under design, but appears to have some favorable features.

However, ordering a new Mustang Mach-E now comes with an additional fee for one basic EV feature: the frunk.

The frunk is the front trunk, and due to the lack of a large engine in the front of an electric vehicle, OEMs are able to offer additional storage space under the hood. There’s one problem, though, and that is that companies appear to be recognizing that they can remove it for free while offering the function for a fee.

Ford is charging $495 for the frunk.

Interestingly, the frunk size varies by vehicle, but the Mustang Mach-E features a 4.7 to 4.8 cubic-foot-sized frunk, which measures approximately 9 inches deep, 26 inches wide, and 14 inches high.

When the vehicle was first released, Ford marketed the frunk as the ultimate tailgating feature, showing it off as a perfect place to store and serve cold shrimp cocktail.

Ford Mach-E frunk is perfect for chowders and chicken wings, and we’re not even joking

It appears the decision to charge for what is a simple advantage of an EV is not going over well, as even Ford loyal customers say the frunk is a “basic expectation” of an EV. Without it, it seems as if fans feel the company is nickel-and-diming its customers.

It will be pretty interesting to see the Mach-E without a frunk, and while it should not be enough to turn people away from potentially buying the vehicle, it seems the decision to add an additional charge to include one will definitely annoy some customers.

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Tesla to improve one of its best features, coding shows

According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.

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Credit: @jojje167 on X

Tesla is looking to upgrade its Matrix Headlights, a unique and high-tech feature that is available on several of its vehicles. The headlights aim to maximize visibility for Tesla drivers while being considerate of oncoming traffic.

The Matrix Headlights Tesla offers utilize dimming of individual light pixels to ensure that visibility stays high for those behind the wheel, while also being considerate of other cars by decreasing the brightness in areas where other cars are traveling.

Here’s what they look like in action:

As you can see, the Matrix headlight system intentionally dims the area where oncoming cars would be impacted by high beams. This keeps visibility at a maximum for everyone on the road, including those who could be hit with bright lights in their eyes.

There are still a handful of complaints from owners, however, but Tesla appears to be looking to resolve these with the coming updates in a Software Version that is currently labeled 2026.2.xxx. The coding was spotted by X user BERKANT:

According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.

Finally, the new system will prevent the high beams from glaring back at the driver. The system is made to dim when it recognizes oncoming cars, but not necessarily objects that could produce glaring issues back at the driver.

Tesla’s revolutionary Matrix headlights are coming to the U.S.

This upgrade is software-focused, so there will not need to be any physical changes or upgrades made to Tesla vehicles that utilize the Matrix headlights currently.

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