Tesla announced a new update to the Model 3 called “Highland.” This update focuses on a refreshed exterior design and will be available in 2023. Like most things with Tesla, the news should be welcomed, but you’ll have to wait for it to come to production.

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Why refresh just the exterior design? The Tesla Model 3 has been around for a while and needs a facelift to give it a fresh look. Competition is building in the EV landscape, with many new EV sedans coming on the market in 2023 that are much more affordable than most Tesla models.

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A car interior with white front chairs and a large screen in the center of the dash

Competing with the Model 3 are the new 2023 Hyundai Ioniq sedan, the Toyota Mirai, the Hyundai Genesis electrified G80, the sportier BMW i7 and Audi RS etron GT. Other automakers like Ford, GM, Volkswagen and more are also preparing EVs in the sedan space that will compete with Tesla’s lower end models for affordability.

White passenger seats interior of a car

Meanwhile, four individuals with inside knowledge of the Highland update told Reuters that Tesla is preparing to update the Model 3 and put that design into production. It will feature style updates and several other refreshed details. As it takes time to update battery and EV motor technology, we expect these updates to be somewhat superficial, but might make the Model 3 look like a much newer design.

A white car parked at a white charging station and background

What insiders say about the Highland design refresh is that it’s more an attempt to save costs than to upgrade features, both due to Tesla’s stock dropping 41% between Q4 2021 and Q3 2022. Additionally, it is due to increased competition in the EV market. Tesla is reportedly looking at ways to reduce the number of interior components and might move production to Tesla’s Shanghai and Fremont factories with production in Shanghai starting in Q3 2023.

+ Tesla

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