Exclusive: Tesla's Model 3, Project Highland Exposed: What’s Changing

Tesla's Model 3 is going to go through some of its biggest changes this year

Tesla

Tesla has been working on a revamp of one of its most popular vehicles, the Model 3. The project is codenamed Project Highland and the vehicle will see the most profound changes since it launched in 2017.

Despite Tesla keeping the car under wraps for months, we now have early information on the major changes coming to the best-selling electric vehicle of all time. Thanks to a trusted insider, we can confirm and provide more information about Tesla's plans for the car. Inside and out, the Highland will change.

Redesigned Headlights

Caped Model 3s have been spotted with the front bumper, rear end and dash covered. However, more recently the incognito Model 3 also had its headlights covered. The headlight openings that were clear before were now covered in what appeared to be duct tape. Turns out there is a good reason for this. The Model 3 revamp will include redesigned headlights. The new headlights will be a different shape than they are today. Tesla has been providing some models with matrix headlights, but they have yet to be enabled through software yet. Tesla will continue to offer matrix headlights through this redesign, although it's not clear whether they'll be enabled at launch either.

The revamped Model 3 is known internally as Project Highland

The Kilowatts/Twitter

Bumper Camera

A new shape of headlights also means a new front bumper. There has been a lot of speculation that the front of the car is changing after recent images show a smoother front end. Tesla is always looking for more aerodynamics to improve the drag coefficient. However, there's another good reason for redesigning a new front bumper. The front bumper will now house a single camera in the center area of the lower-vent area of the bumper.

The location of the new camera will be very similar to the one shown off on the Cybertruck at Tesla's Investor Day.

The Cybertruck will have a camera in the center of the front bumper

Sofiaan/Twitter

Since the company removed USS, people have been wondering how the car will detect objects in what's considered a camera blind spot directly in front of the vehicle. Now we know.

Rear Bumper

The rear bumper of the vehicle is also being redesigned, although it's not clear why. We don't expect the rear camera to change position and there won't be additional cameras in the rear of the vehicle. The new rear bumper could just be to 'refresh' the car or may have cost-saving measures.

Mirrors

Updated mirrors are also joining the party. We're told that they will receive a very minor 'refresh' and will look very similar to the way they do today. It's not clear whether Tesla is changing them to match other areas of the vehicle better or to streamline manufacturing, but we've been told to expect a minor change.

Additional Cameras

Tesla recently launched hardware 4.0 on Model S and Model X cars, although many were surprised to learn that the new vehicles feature the same number of cameras as HW 3 vehicles, when hardware 4 allows for more cameras. This is where Project Highland comes in.

We can now say that more cameras will indeed be used in Project Highland. There will be three new cameras in all, one in the center of the front bumper as we discussed earlier, and two more on the sides of the vehicle.

The fender camera housing will now contain two cameras each. One will face backward as it does now, while the other will point in the other direction. It's not clear how the new camera will be oriented, but we speculate that they will be aimed off to the side to give the car a better view at certain intersections.

Some road junctions have objects such as buildings or bushes that can make it difficult for the vehicle to see with its B-pillar cameras. This often causes the vehicle to creep forward in order to gain enough visibility to proceed. Creeping too far forward sometimes causes the vehicle to be in a poor situation, where it has entered the path of other vehicles. These new cameras are likely aimed at solving this problem.

As previously reported, the repeater camera housing on the front fenders appears to be changing. It now appears to include a line that goes further back than the original. This could be part of the new design.

Project Highland will ship with Tesla's latest supercomputer, Hardware 4. The cameras themselves are expected to be the same cameras featured on HW4 Model S and Model X vehicles. They're estimated to be 5-megapixel cameras with an anti-glare coating. These cameras are significantly more advanced than the current 1.2-megapixel cameras in current HW 3 vehicles.

With the new front bumper cameras and the two additional side cameras, Tesla may now have everything it needs in order to provide a real birds-eye view that is often seen in many vehicles.

Sensors

In order to cut costs, Tesla is removing the vehicle's temperature sensor that is used to detect the temperature outside of the vehicle. Instead of using a temperature sensor, the vehicle will determine the exterior temperature based on its GPS location and weather data. This could lead to more accurate temperatures being displayed, as wind or other environmental factors can sometimes cause inaccuracies. However, owners will lose the ability to view the temperature in their immediate location, such as their garage.

Tesla is also making improvements to its GPS module which is expected to provide a more accurate location. In August 2022, Tesla applied for a patent on a multi-band Global Navigation Satellite System (GNSS) antenna. Various types of satellites and networks can be used to identify an object's location. GPS is just one of those networks. This new system allows Tesla to use other networks, besides GPS, in order to identify the vehicle's location. This could lead to faster location detection or higher precision.

Interior

Inside the vehicle, there will be some changes as well. However, don't expect a major refresh as we saw with the 2021 Model S, but it will still be noticeable. The wood trim is being removed and replaced with a fabric finish, possibly Alcantara fabric that Tesla already uses in the Model S and X.

The vehicle's dash will also receive a facelift, but we weren't given any details on what's changing with it. Again, this could be a way to simplify the manufacturing process instead of offering something new and improved.

There may be other interior changes, but these are expected to be the two bigger differences. We've been told that this refresh will be 'minor' and focuses on cost-cutting, however, it appears that Tesla is taking the time to upgrade the vehicle to its newest hardware and introduce new cameras, which will certainly be a highlight of the vehicle.

The Model Y project, codenamed Juniper is already underway as well, although it's expected to arrive after the Model 3 revamp. We expect the Model Y to undergo many of the same changes that we've outlined here.

Release Date

Overall, the Model 3 Highland's updates show that Tesla is always looking for ways to improve its vehicles and stay ahead of the competition. As is the nature of these things, some items could be subject to change. With these changes, the Model 3 will continue its success as one of the most popular electric vehicles on the market. Production for the vehicle is expected to start in the third quarter.

Tesla Robotaxi to Expand Service Area / Geofence This Weekend

Tesla's Robotaxi initial service area

Not a Tesla App

Last night on X, Elon Musk confirmed that Tesla will be expanding the service area for its Robotaxi Network pilot in Austin, Texas, this coming weekend. This is the first official confirmation we’ve had of a date for expansion, following news that Tesla is hiring more Vehicle Operators and plans to expand the Robotaxi supervisor ratio in the coming months.

This is a sign of Tesla’s confidence in the Robotaxi pilot program and its current FSD builds.

Expanding to a larger service area in Austin this weekend

— Elon Musk (@elonmusk) July 10, 2025

Confirmation of Validation

The announcement confirms the sights we’ve been seeing of Tesla’s engineering validation vehicles focusing on areas outside the initial geofence. This public test shows that Tesla was likely finalizing FSD builds and gathering the necessary safety data to push the boundaries for the service, and this upcoming weekend’s expansion will be the first direct result of that work.

Given the increase in service zone size, this expansion will also likely include the addition of more vehicles to the initial Robotaxi fleet of approximately 20 vehicles. We expect the new number to be anywhere from 30-50 vehicles serving both the original and new areas, combined, based on Tesla’s previously expected rollout schedule.

What to Expect

While the exact new boundaries haven’t been released, it is almost certain that the expansion will include the South Congress Bridge and the downtown core areas of Austin. Expanding into a dense urban zone will include more complex intersections, heavy pedestrian traffic, and a unique road layout. That is a major vote of confidence for Robotaxi FSD’s capabilities.

The expansion will also help Tesla to close the service area gap with Waymo, its primary autonomous competitor in the city. This quick expansion is a sign of just how scalable Tesla’s vision-only approach is, versus Waymo’s arduous and drawn-out mapping processes.

We also expect that with this first service zone expansion, Tesla will continue to invite more people to its Robotaxi Network in the coming weeks. Tesla has already sent out various rounds of events, as they’ll need users to continue using the system. If you’re waiting for an invite, it may be time to start getting excited about the next rollout.

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Musk: Grok AI Arriving in Teslas Next Week

Greentheonly / Not a Tesla App

We’ve been hearing about Grok, xAI’s AI assistant, coming to Teslas for almost two years now, but this is finally coming to fruition soon. XAI unveiled Grok 4 last night, but the entire stream didn’t mention Teslas. However, Musk later posted on X that Grok will arrive in Tesla vehicles “by next week.”

Between leaks and the Grok mobile app, there’s a lot we already know about Grok, but there are a few missing pieces that will be cleared when it finally arrives.

Next Week, or Next Next Week?

Musk said that Grok would arrive by next week, meaning it could arrive before then. However, based on how Musk typically states Tesla timelines, there are a few things to consider that give us a better idea of what to expect.

First, whenever Musk posts a Tesla timeline on X, he typically means when it’ll be released to employees and not a public release. Expect this to be the same thing.

Tesla releases software updates to employees first for a final round of testing before starting a gradual release to the public. Sometimes issues are found, especially with FSD updates, and the update needs some fixes before being released publicly. So expect employees to get it by next week, and not necessarily normal Tesla owners.

The second part to this is that Tesla always rolls out their updates gradually, so when it does finally arrive, it’ll only be available on a small percentage of vehicles. Tesla will gradually monitor issues and logs, continuing the rollout as long as no major issues are found.

Which Software Update?

The entire Grok UI was already included in software update 2025.20, but it’s not exposed to users. Typically, a new feature like Grok requires a vehicle update to be added; however, this version may be different, as it’s locked behind a server-side configuration.

The Tesla app was recently updated to support logging in to Grok, so it appears that all or most of the necessary pieces are already in place.

Tesla likely has the ability to enable it for all supported vehicles with a simple switch. However, we feel more confident in it being rolled out in Tesla’s next major update, which is likely to be 2025.24 or 2025.26. Rolling it out in a new update aligns with how Tesla has historically introduced features.

If they turned it on for everyone at the same time, they could be exposing everyone to potential new issues, rather than only a smaller segment of users. While Grok is now well-tested through X and the Grok app, there are several elements that are new in Teslas, likely including the ability to control various vehicle functions, such as opening the glove box or other capabilities that voice commands are currently capable of. The Grok interface in the vehicle is also entirely new and may have some bugs associated with it that will need to be addressed, especially if they impact other features.

What we can likely expect is that Tesla will make some tweaks or bug fixes to Grok with the next major update that weren’t included in update 2025.20 and they’ll begin rolling it out to employees and then customers.

Supported Vehicles

Speaking of supported vehicles, thanks to the behind-the-scenes look at Grok, we have a good idea of the vehicles that will be supported. Tesla uses the same code for most of its vehicles, but then it’s compiled for each type of hardware. However, only the needed code is compiled for each vehicle, meaning that some pieces are left out entirely. Unfortunately, Grok code is not included in Intel software builds, meaning that only AMD Ryzen-based vehicles will receive Grok, at least initially.

We’ve seen Tesla go back and add support for Intel vehicles after it initially released a feature for AMD vehicles. We saw this with the weather radar overlay and several other features in the past. However, Tesla has been developing code with web technologies lately. While this makes development easier, it just doesn’t perform as well on the slower Intel hardware, causing it to be left out. We saw this with the new Dashcam Viewer, which is entirely coded in HTML, CSS, and JS. The new viewer was available on HW3 and HW4 vehicles, but only those that included the Ryzen infotainment processor.

Grok is coming to Tesla vehicles very soon. Next week at the latest.

— Elon Musk (@elonmusk) July 10, 2025

What to Expect

There’s a lot we’re expecting in Grok for Teslas. Some people will absolutely love it because it’ll completely transform their drives from a singular experience to feeling like they have a knowledgeable person sitting right next to them. Given the recent controversies surrounding Grok, some people will strongly oppose it. Hopefully, Tesla makes it easy for those users to turn off Grok.

The voice command system, which is activated through the steering wheel, is expected to be replaced with Grok. This will mean that you’ll be able to talk to your vehicle much more naturally, rather than having to remember specific syntax and commands, which should be a major improvement.

We’re personally looking forward to just being able to ask questions that pop into our heads while driving, such as What’s the date of Tesla’s next event, or How many miles away is Mars? Knowledge will be available at the touch of a finger and more accessible than ever.

Grok is also expected to support continuous conversations, meaning that you’ll be able to hold a conversation with it and go back and forth about a certain topic. While there are hints of a wake word in the code, for now, it seems like you’ll press the steering wheel button once to activate it, and then again to turn it off.

For those excited about AI and Grok, this will be one of the biggest additions to Tesla’s software in years, possibly only rivaled by the Dashcam / Sentry Mode feature and FSD Beta.

It shouldn’t be long now before we all have a chance to try it out for ourselves.

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