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Model 3 'Project Highland' Marks an Important Change in Tesla's Strategy

Tesla Model 3 'Project Highland' rendering 8 photos
Photo: @NotATeslaApp via Twitter | Edited
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The recent Model 3 front picture leak may have spoiled Tesla's Project Highland show, but many details are still under wraps. New prototype sightings unveil more than Tesla would like us to know, including information about the cabin.
Rumors about an update to the Model 3 have been circling since last year. In December, we were treated to the first prototype of the refreshed model. The pictures puzzled the Tesla community more than revealing anything, considering nothing appeared to have been changed. That was an alpha prototype, still resembling the production car, despite the black cladding covering the front and rear.

The cars that were later seen testing on public roads had modified side body panels and a more streamlined front bumper, showing how Tesla is changing its base model. Still, there was not much to talk about, but interesting to see. Semi-confidential talks with Tesla insiders also revealed exciting details about the upcoming Model 3, expected to launch toward the end of 2023. The key takeaway from these discussions was that Tesla aims to cut costs and simplify Model 3 production, not dazzle everyone with new features.

This course was emphasized in the past months by the repeated price cuts across the Tesla lineup. Tesla didn't make it a secret that it wants to scale production to the extreme, and we believe Project Highland will allow for that. A more affordable Model 3 is crucial in expanding the market footprint until the next-gen model that Tesla is working on reaches mass production sometime in 2025. To facilitate scaling to the extreme, Tesla is willing to change its strategy that worked so well before.

The first picture of the "Project Highland" Model 3 showed what simplification might look like, and it didn't disappoint. Seeing the car "in the metal" also encouraged others to talk more openly about its features. Subsequent prototypes seen testing on public roads revealed new secrets that Tesla tried to keep hidden. First, the obvious: the upcoming Model 3 will not have fog lights anymore, another cut that would allow Tesla to get lower with the sticker price.

Another important thing we noticed on these prototypes is that Tesla Model 3 would still have a round steering wheel, which was expected. Tesla ditched the yoke on the Model S/X, although it's still offering it as an option for those who want it. We also noticed from the latest pictures and videos that the Model 3 prototypes have a much bigger infotainment display, probably the 17-inch part from the Model S/X. This will allow Tesla to optimize its supply chain and achieve a better economy of scale for these parts.

A new report alleges that Tesla would change its vertical integration strategy and outsource some of the part production. This will start with the seats of the Model 3, which will not be made in-house anymore. The seats have been widely appreciated and considered one of the best features of Tesla cars. The news didn't resonate well with the community, although the change may have already started. A Tesla owner who took delivery of a Model 3 in March noticed that the headrests had a different shape. They didn't feel different, though, so hopefully, this change would not affect the quality.

One hilarious detail people noticed in the pictures of the latest prototypes was that they, too, suffer from misaligned body panels. It attracted attention because Tesla modified the repeater camera flare to protrude into the door. Fret not, though; this is definitely within spec, as people jokingly said.

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About the author: Cristian Agatie
Cristian Agatie profile photo

After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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