Tesla has made some significant changes to the Model 3 Rear Wheel Drive that’s sold in Mexico – in fact, they’re launching an entirely new textile interior option for the market.
There are several significant changes throughout the interior, but let’s take a look at the new textile interior first.
Textile Seats
Tesla has been well-known for offering vegan leatherette in all its vehicles up to this point, as the only interior option – primarily in black and white for the Model 3 and Model Y, but also in cream for the Model S and Model X.
This new textile interior is now the only option available for the Model 3 RWD in Mexico – coming in gray and is listed as “Standard Fabric”. This textile-only option is also not available for the Long Range or Performance variants, or on any of the Model Y variants.
Tesla has introduced a fabric seating material
Tesla
Heating & Cooling Features Removed
Tesla didn’t stop at the seating material with these changes. They also included other, somewhat surprising changes throughout the interior. There is no longer a semi-premium interior for the RWD Model 3 in Mexico. This means all the Alcantara fabric has been replaced with the same textile fabric as the seats.
Alongside the lack of vegan leatherette, Tesla has also removed heated front and rear seats, as well as the heated steering wheel. This isn’t a surprising move in a warmer market like Mexico and it makes a lot of sense as Tesla makes its way into other markets that don’t require heated elements such as India and parts of Africa. However, due to the fabric textile seating, ventilated seats have also been removed from this model.
While we can see the advantages of not having leather-like seats in the Mexican heat, the lack of ventilated seats is a big disappointment.
Rear Screen Removed
The rear screen is also removed in this model
Tesla
There are a few changes that strike us as odd as well. The rear screen is powered by the same infotainment unit that powers the front screen, so the cost for Tesla is extremely minimal. Think of the rear screen as an additional display on a computer.
Tesla is unlikely to create a custom harness that would power the rear screen for this vehicle, so it’s possible the rear screen could be retrofitted in these models.
Ambient Lighting, Glass, and Speakers
In addition, Tesla has replaced its RGB ambient lighting with a white-only version. This seems like an odd choice, especially as in the open market, a color-capable LED strip versus a single-color strip is only the difference of a few dollars. While this may not provide significant savings for Tesla, it could be a tactic to upsell their higher trim levels that include the RGB feature.
The colorful, customizable ambient lighting feature likely helps sell quite a few cars. Tesla has recently been expanding the capabilities of its ambient lighting feature. With update 2024.26 Tesla added the ability to choose the brightness of the ambient lighting, as well as adding the option to have it only turn on at night time. Both of these features are expected to remain in this Mexican version. However, the ability for the ambient lighting to turn red when Service Mode is active won’t be available.
In addition to ambient lighting changes, Tesla is limiting its acoustic glass, which helps reduce road noise, to just the front windows.
The audio performance in this model has also been reduced. The number of speakers has gone from 17 down to 9. In addition, both subwoofers have been removed and there is now a single amplifier.
The Model 3 RWD's interior in Mexico
Not a Tesla App
Price
In exchange for dropping all of these changes, Tesla has dropped the price of the Model 3 RWD by $50,000 MXN – which is approximately $2,680 USD at the time of writing. We’re not sure that these significant changes will have a positive impact on Mexican sales. Tesla may be testing the waters with these changes, and if it bodes well for sales, we could see these changes be applied to other factories and markets as well.
Next-Gen Vehicle
Most interesting is that this new format could be the standard for Tesla’s upcoming next-generation vehicle – which is expected to be priced at around $25,000 USD. Earlier this year, Tesla pivoted and said that its next-gen vehicle will be built using the same manufacturing process as current models instead of the new unboxed process, which Tesla is now saving for the robotaxi.
The changes we’re seeing with this Mexican model will be something to keep an eye on, as the lack of a heated steering wheel and seat heating won’t be taken too well in most European countries or northern US states, nor in China and other colder climates. We’ll keep an eye out to see if this model makes its way into any other regions. For now, the Model 3 Long Range and Performance come with all the usual features we’ve come to expect.
Elon Musk and SpaceX have set some ambitious dates for the first Mars landing. Musk envisions launching the Starship toward Mars by late 2026—less than two years away. There won’t be any humans on board in the initial launches. Instead, Optimus will fill in for humans. Musk stated that human landings could follow as early as 2029 to 2031.
There are certain windows that make flights to Mars feasible for humans. So SpaceX is aiming for humans to be a part of the second or third Earth/Mars launch windows from now, which are 5 to 7 years away.
Tesla continues advancing Optimus, and SpaceX remains relentless. Another Starship test launch is in the books, all while maintaining their steady weekly cadence of Dragon missions to space.
Starship departs for Mars at the end of next year, carrying Optimus.
Civilization On Earth
Musk goes on to state something interesting in another post on X. He says that the key will be whether “Earth’s civilizational technology level will last long enough to ensure Mars can grow by itself, even if supply ships from Earth stop coming.”
The statement suggests two possibilities—that Earth’s civilization collapses or fails to advance enough to solve unforeseen challenges of sustaining life on Mars.
The key concern is whether humanity will remain technologically and industrially capable long enough to ensure that Mars can eventually become self-sufficient. If Earth’s civilization weakens, either due to collapse, stagnation, or regression, Mars might not get the support it needs to reach full independence—leading to the colony’s failure.
Tossing Optimus on board Starship is a smart move, instead of having smaller, single-task robots. Optimus also has the advantage of being upgradeable on Mars as long as the hardware holds up. It could be a lot like what we saw with Tesla vehicles, where the hardware was present for many years before the vehicle was capable of driving on city streets. Optimus’ capabilities will also improve over time, even if the hardware is older.
But, how does Elon Musk envision Optimus’ role on Mars?
The answer might be simple. SpaceX can leverage a fleet of Optimus robots to assemble shelters and infrastructure before humans even arrive.
Optimus is already highly capable, with precise hands adept at manipulating tools and objects. On Mars, it could construct basic habitats, set up survival systems, and even handle ice processing, water recycling, and food production.
These facilities will be absolutely essential for the first humans to comfortably settle in and begin work on expanding, maintaining, and preparing for proper human settlement.
Beyond construction, Optimus has a major advantage—it doesn’t need oxygen. Instead, mission planners would only need to monitor battery levels, wear and tear, and any potential damage.
That said, even humanoid robots face risks. Martian dust has long been an obstacle in space exploration, clogging solar panels, damaging equipment, and causing malfunctions. Tesla will need to redesign Optimus to withstand the harsh conditions. Its joints and components will need to be sealed against Mars’ relentless environment.
Starship
Mechazilla catching Starship7 Rocket Booster for the first time ever! 🚀 Incredible Achievement by @spacex
Starship, the largest rocket ever built, is immensely capable—but still in its early testing phases. SpaceX has dedicated hundreds of hours between each flight test, refining and improving with every launch. With several Super Heavy booster catches now under their belt, the next challenge is proving Starship itself can land.
Once SpaceX can launch, complete a mission, and safely land both the booster and Starship, the dream of reaching Mars may no longer seem so far-fetched.
With that, Happy 23rd Anniversary, SpaceX! We’re with you all the way as you push humanity toward the stars.
Happy 23rd Anniversary to @SpaceX! Founded on March 14, 2002, and still pushing the limits of what’s possible, here’s to the next chapter of making life multi-planetary! pic.twitter.com/mzvrdEagAn
According to Chinese blog posts from earlier last week, now vetted by Reuters, Tesla intends to produce a cut-down version of the Model Y, initially for the Chinese market, sometime in 2026.
This follows the launch of Tesla’s cut-down Model 3 for Mexico, as well as news that Tesla intends to launch their new next-gen model sometime in the near future.
Cut Down, But How?
The new Model Y, internally referred to as Project E41, is designed to lower the entry price of Tesla’s popular SUV—one of the most compelling options on the market due to its size, range, and versatility, especially following the launch of the refreshed Model Y.
To achieve this, Tesla is reportedly aiming to reduce the Model Y’s total cost by nearly 20%, according to reports from China. While exact changes remain unknown, we can make informed guesses based on the cost-saving measures Tesla implemented in the scaled-down Model 3 for Mexico.
Textile Seats and Trim
One of the most noticeable changes in the cost-cut version of the Model 3 in Mexico was the removal of vegan leather throughout the interior. In its place, Tesla opted for a durable textile fabric for the seats, reducing material costs. Additionally, any Alcantara trim pieces were replaced with the same textile in various areas.
No Heated or Cooled Seats
Another major cost-cutting measure was the removal of heated and cooled seats, along with the heated steering wheel. While these feature reductions may seem minor, eliminating them reduces various things, such as electrical components, harnesses, and ductwork that are required for seat ventilation.
No Rear Screen
One of the more unexpected changes in the reduced-cost Model 3 was the removal of the rear screen, despite it being powered by the same front infotainment computer as the front display. Given that the screen functions primarily as an additional display rather than a standalone system, the cost to include it is extremely low. It’s one of those really smart additions Tesla has added that increases value for the consumer with minimal cost to Tesla.
Tesla is unlikely to redesign or modify the vehicle’s wiring harness for this change, meaning a rear screen could potentially be retrofitted later by the customer. Based on replacement part estimates, the screen likely costs Tesla between $5 and $20 per vehicle, which acts as a secondary monitor for the infotainment computer.
Ambient Lighting, Acoustic Glass, Speakers
The final set of changes also focuses on the interior. Tesla replaced the RGB-capable ambient lighting with a simpler white-only version—likely saving only a few dollars per vehicle. While this may seem like a minor and somewhat unexpected cut, it could serve as an upsell opportunity to the standard RWD variant.
Additionally, Tesla reduced the use of dual-pane acoustic glass, now limiting it to just the front windows and windshield. This change drastically cuts costs but also affects cabin noise levels. The dual-pane glass played a key role in making the refreshed Model Y noticeably quieter, so this downgrade will likely bring noise insulation closer to that of the original Model Y.
As for audio, Tesla scaled down the speaker system in the Mexican Model 3 from 17 speakers to just nine, while also removing the subwoofers and one of the audio amplifiers. While this cuts costs due to wiring and speakers, it also has a large impact on the audio quality in the vehicle.
Project E41 is Not the Next-Gen Model
It’s important to note that Project E41 is not the same as the upcoming, more affordable next-gen platform, which is internally referred to as Project Redwood. While Project E41 focuses on a reduced-cost version of the Model Y, Project Redwood is designed to test Tesla’s manufacturing capabilities, using their innovative unboxed assembly method to reduce both costs and production time. The goal is to create a vehicle that is smaller and more affordable, while also keeping it safe and capable of self-driving.
Tesla previously confirmed that they plan to unveil new models—distinct from cut-down versions of the Model 3 or Model Y—during their Q4 2024 Earnings Call. However, the executive team has been careful not to divulge too many details about the upcoming model during interviews. This suggests there may be a lot more that has yet to be unveiled.
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