A rendering of what the Model 3 refresh could look like
Cybrtrk420/Twitter
We don't need to read tea leaves or look into a crystal ball to predict that Tesla's Model 3 refresh, a.k.a the Highland, is fast approaching its release date. However, there's even more evidence emerging that backs up what we have already figured out. The Highland is ready.
It is Tesla's worst-kept secret, and China's sales figures for July 2023 prove it. Despite a year-over-year increase, there has been a 31 percent decline in sales from June. Shoppers are eagerly awaiting the newest version of the Model 3 and don't want to spend money on something that will be the "old" model next month. This is further reinforced by Tesla's recent filing with the Chinese government, seeking what looks to be approval for the redesigned 'Highland' Model 3.
Production and Market Expectations
According to X (Twitter) users Chris Zheng, and WuWa (who have provided a lot of excellent inside information), Tesla has begun producing its latest Model 3 at its Giga Shanghai facility. With the production lines currently alternating between the older and newer Model 3, a complete transition to the Highland Refresh is expected by mid-August, August 14 to be exact, suggesting a possible release of the vehicle as early as September.
This calculated maneuver coincides with extended delivery times for the Model 3 in the European market. Since European Model 3 units come from Giga Shanghai, this aligns seamlessly with the timelines required to ship the newly produced cars from China to Europe.
Features and Innovations of the Highland Refresh
The Highland Refresh is not just a cosmetic enhancement; it promises to be a significant upgrade. The next-generation Model 3 is poised to exhibit design updates and substantial improvements in hardware and production processes. Features such as ventilated seats, improved interior lighting, and Smart Shift are expected to be included. The Model 3 refresh is also expected to be lighter and more cost-efficient to manufacture, this model also integrates hardware 4.0 and at least one additional camera mounted on the front bumper.
Anticipated Launch and Impact on the Market
As Tesla gears up for this monumental event, it will continue to face a challenge to convince prospective buyers to purchase the existing Model 3, you know, that one that was cutting-edge technology just a few minutes ago.
Production is expected to be in full swing at both Giga Shanghai and Fremont factories by the end of the month. This unveiling could significantly stimulate demand in the fourth quarter. Interestingly, the fourth quarter starts October 1, and the last day you can transfer Full Self Driving to a new vehicle is September 30. Sign, sign, everywhere a sign.
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.
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.
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.
