The Tesla Model 3 has been on the market since 2017 and is overdue for a facelift. According to a report by Reuters, Tesla is working on a redesign which has been codenamed “Project Highland”:

“One focus of the redesign codenamed “Highland” is to reduce the number of components and complexity in the interior of the Model 3 while focusing on features that Tesla buyers value, including the display, according to the people, who asked not to be named because the revamp has not been announced.” 

The report does not go into many details of the redesign, but focuses on cost reduction and that the vehicle should go into production at Gigafactory Shanghai and the Fremont factory during the third quarter of 2023.

Since early 2021, Tesla has been integrating its large casting technology to produce its Model Y using single large casting parts instead of dozens of parts. This new technology enabled Tesla to improve manufacturing efficiency compared to the Model 3. Elon Musk has said that Tesla intends to bring the same technology to the Model 3.

Just last week, a new Tesla Model 3 prototype with camouflage was spotted in Santa Cruz, California. However, not much can be determined from the pictures since the camouflage covers both the front and back of the car.