Tesla's 2023 Model 3 'revamp' is for cost-cutting, not a redesign

Tesla's revamping its Model 3 vehicle

Tesla

Tesla’s gearing up for a small "revamp" of its popular Model 3 vehicle, which is set to go into production in the middle of 2023.

According to Reuters, the revamp is called “Project Highland” and aimed at lowering the production costs and increasing the Model 3’s attractiveness and not because it needs a redesign. The Model 3 was launched back in 2017, and Tesla has already sold well over 1 million of them.

According to our sources, don’t expect a design overhaul of the Model 3, though. Instead, Project Highland will focus on reducing the number of components and complexity of the Model 3’s interior.

The main goal of this Model 3 revamp is to increase manufacturing efficiencies and reduce costs. Tesla would like to get the Long Range and possibly the Performance variants of the Model 3 to qualify for the US tax incentive for 2023. Under this tax credit, manufacturers’ suggested retail price for brand-new sedans must be less than $55,000. For SUVs, trucks and vans, the maximum price is capped at $80,000.

Our previous evaluation of the vehicles that would qualify include the Model 3 RWD, Model Y Long Range (AWD), and Model Y Performance. However, this will likely change once the revamp goes into production.

Do not expect new vehicle features to be added to the Model 3, such as a rear display, air suspension, or ventilated seats. These features would raise the price of the Model 3 and create a significant overlap between the Model 3 and the refreshed Model S.

Yoke Steering Wheel

One new feature that is possible in this Model 3 revamp is the introduction of a yoke steering wheel or more likely, a wheel similar to the Tesla Semi, which has capacitive controls and no stalks. The stalks are replaced with capacitive controls on the steering wheel and touch controls on the vehicle's display. We previously reported on this rumor in August.

Redesign Rumors

A few rumors are floating around online including a redesigned front bumper and removal of door handles in exchange for touchless doors like the Cybertruck and Roadster 2.0, although our source tells us that this is cool, but not accurate.

2023 Model 3 Update

Based on recent rumors
-Bumper facelift (in line with Y/S/X)
-No door handles, wing mirrors or ultra sonics (as Cybertruck) pic.twitter.com/GQ5k64bV4O

— Alwin (@Alwinart) November 29, 2022

The revamped Model 3 is likely to remain without its ultrasonic sensors, as Tesla is beginning its transition to its own Tesla Vision. This technology uses the vehicle’s onboard cameras and vast amounts of data from the neural net to function.

Over the past few years, Tesla has made significant efficiencies in the way it builds and manufactures vehicles. Recently, the Model Y switched to a single-mold front casting. This requires 169 fewer pieces and 1,600 fewer welds. To achieve this, Tesla is using its Giga Presses at its Berlin Gigafactory.

Tesla Releases FSD V12.6.1 for Model 3 & Model Y

Not a Tesla App

Last night, Tesla released software update 2024.45.25.15, which includes FSD V12.6.1. This update adds support for all HW3 vehicles, including the Model 3 and Model Y. We’re excited to see the continued support for HW3 owners. 

FSD V12.6.1

V12.6.1 is now going wide, according to Ashok Elluswamy, Tesla’s VP of AI. This update is going to the Model 3 and Model Y for the first time - as only the Model S and Model X were included in FSD V12.6. 

V12.6 is a big step forward for HW3 - it includes End-to-End on Highway, Improved City Streets Behavior, and Smoother and More Accurate Tracking - all contributing towards a better, smoother, and more comfortable build of FSD. You can read our comparison between FSD V12.6 and V13.2.2 here. 

In short, FSD V12.6 performs considerably closer to V13 than V12.5.4.2 - which is a massive improvement. It performs as well as the Cybertruck version of FSD V13, which is still missing a few features when compared to other HW4 vehicles, but it’s a great sign for HW3. A lot of the improvements can be pointed to in the improvements to lane selection and decision-making - the vehicle tends to hesitate far less on V12.6, meaning the ride is a lot smoother. Many early V12.6 testers mentioned that it felt more like V13-mini than anything else.

Legacy Model S & X

We haven’t seen this update hit any legacy Model S and Model X vehicles just yet. We’re not sure whether Ashok’s statement of “generally” applies here - but it should. If you do get the update, please let us know.

Legacy Model S and Model X vehicles are still on an older FSD build and potentially won’t see another FSD update for a little while longer. While they do have the same FSD hardware as other vehicles, there are enough hardware differences that require a build specifically for these vehicles.

Release Date

FSD V12.6.1 is going out now to the redesigned Model S and X with HW3 and all Model 3 and Model Y vehicles with HW3. The initial wave went out last night, and we expect to see more later today or tomorrow. If this release ends up going “wide,” we should see much larger waves go out next week.

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Tesla Issues Physical & OTA Recall for Hardware 4 Computer

Not a Tesla App

Tesla has issued a recall for some vehicles due to issues linked to a revision of the Hardware 4 (HW4) computer that was introduced this past November. This recall affects all vehicles with the revised hardware except for the Cybertruck, as it uses a slightly modified version of the HW4 system.

Many vehicle owners have reported a complete failure of their Autopilot computer, which not only leaves the vehicle without FSD and Autopilot but also disables many of the active safety features that make a Tesla what it is.

Let’s take a look at this recall - because the recall is partially physical and partially a software recall.

HW4 Failure

Tesla has identified the failure and flagged it to the U.S. NHTSA (but not Transport Canada or Euro NCAP at the time of publishing) as a recall.

Tesla mentions that the vehicle’s FSD computer circuit board may short circuit, resulting in the loss of the rearview camera image. The recall itself is focused on the rearview camera - as not having a functional rearview camera breaks a Federal Motor Vehicle Safety Standard. However, it does impact more than just the rearview camera.

As previously mentioned, users have experienced the full loss of Autopilot and FSD on these vehicles, as well as reduced traction control and removal of safety features such as automatic emergency braking, collision avoidance assist, and forward collision warnings. 

While the vehicle remains driveable, it is not necessarily a good idea to drive the vehicle with many of these features, especially with the reduced traction control noted by many people. We’ve already noted that while Tesla has been sending tow trucks to pick up some vehicles, it is also prompting owners to drive the vehicle to their service center in some cases.

Remedy

Unlike most of Tesla’s recalls, this one isn’t entirely an OTA recall, owing to the fact that people have already experienced circuit board shorts and are already waiting for replacements.

The software portion of the recall has already been mostly completed for any vehicles with Tesla software update 2024.45.25.3 or greater. However, a significant portion of the tracked fleet remains on update 2024.44.25.2 (approximately 20%), so we recommend updating your HW4 vehicle whenever you receive the notification.

On the hardware side, Tesla is immediately identifying and replacing hardware that has had circuit board failure. Tesla is also reaching out to customers who have expressed intermittent issues with Autopilot features, active safety features, or vehicle cameras that don't display correctly. If you have experienced any of these issues in a late 2024 vehicle, we recommend submitting a service ticket with Tesla to ensure that your vehicle isn’t affected by this recall.

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