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

By Lennon Cihak
Tesla's revamping its Model 3 vehicle
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.

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.

Elon to Switch to the Cybertruck; Volume Production in 2024

By Kevin Armstrong
Cybertruck mass production to start in 2024
Cybertruck mass production to start in 2024
Kim Java

Tesla's fourth quarter and 2022 earnings call with investors was mostly good news unless you were planning to drive a Cybertruck soon. While company executives eagerly jumped on every question asked by investors, there was a noticeable pause when a point-blank question was asked about Cybertruck's mid-year production date.

Elon Musk responded "um, we do expect production to start, I don't know, maybe sometime this summer. But I always like to try to downplay the start of production because the start of production is always very slow. It increases exponentially, but it's always very slow at first. So I wouldn't put too much thought in start of production."

Volume Production Next Year

If the millions of people with Cybertruck reservations were in attendance, you might have felt the air leave the room. The previous belief was mass production would start by the end of 2023. There may be some stainless-steel beauties on the road by then, but only a few. "It's kind of when does volume production actually happen, and that's next year," said Musk.

Perhaps sensing some disappointed buyers, Lars Moravy, Tesla's Vice President of Vehicle Engineering added, "(I'd) like just to emphasize on that, we've started installation of all the production equipment here in Giga Texas, castings, general assembly, body shops. We built all our beta vehicles, some more coming still in the next month, but as you said, the ramp will really come 2024."

The Cybertruck Will be Elon's Next Car

Cybertruck was originally announced in 2019 at the memorable event that included the unbreakable armor glass smashing. Musk was wearing the smashed glass Cybertruck t-shirt while taking questions from investors. While the wait continues, he is adamant that it will be worth it, "So it's an incredible product. I can't wait to drive it personally. It will be the car that I drive every day… it's just one of those products that only comes along once in a while, and it's really special."

The original release deadline was set for 2021. However, the production date has been delayed due to unforeseen circumstances, like a global pandemic. Nevertheless, it is a positive sign that beta vehicles have been produced. Images of what appears to be a Cybertruck were leaked a few months ago.

Recently, chief designer Franz von Holzhausen did confirm that the Cybertruck was ready for production, but it's a work in progress. Every Tesla beta product gets thoroughly examined and meticulously reviewed before the next step. But at least it's a step in the right direction.

A Look at Tesla's 2022 Numbers and Record Quarter

By Gabe Rodriguez Morrison
Tesla set new records in production and deliveries while beating analyst expectations.
Tesla set new records in production and deliveries while beating analyst expectations.
Statista

Tesla published their Q4 2022 and full-year financial results, setting new records in production and deliveries while beating analyst expectations. Tesla’s annual profit rose to $12.6 billion in 2022, from $5.5 billion in 2021. Annual revenue rose to $81.5 billion, from $53.8 billion the year prior. Tesla reported fourth-quarter revenue of $24.32 billion beating analysts' $24.07 billion estimate. The automaker also reported earnings per share of $1.19 beating analysts' $1.12 estimate.

Tesla’s stock rose more than 5% in after-hours trading following the earnings release and surged more than 10% the next day.

Tesla's Q4 2022 revenue set a new record for the company, up 59% from a year earlier. In addition to automotive revenue of $21.3 billion, Tesla recognized $324 million of deferred revenue from the company’s driver assistance systems.

FSD Beta Numbers

Tesla reported that 90 million miles have now been driven with FSD Beta, up from 58 million miles in the previous quarter. The company also confirmed that they have about 400,000 FSD Beta users in North America, a sizeable increase since the last report. With such a steep increase in miles driven and FSD Beta becoming widely available in North America, Tesla is making significant progress with its autonomous driving software.

In late 2022 and into this year, Tesla began cutting prices on its cars globally. Elon spoke about how recent price cuts have fueled a surge in demand for Tesla: “Thus far in January we’ve seen the strongest orders year-to-date than ever in our history. We’re currently seeing orders of almost twice the rate of production.” He added: “These price changes really make a difference for the average consumer.” Tesla acknowledges that average sales prices have to decrease over time because affordability is part of Tesla's mission to grow into a company that sells multiple millions of cars annually.

Price cuts will impact profitability, but margins should remain healthy, Tesla CFO Zach Kirkhorn affirmed. Tesla has wider operating margins than the industry average, which allows them to make such price cuts.

Elon issued an uncertain forecast for 2023, saying Tesla planned on 1.8 million vehicles for the year without specifying whether that was a target for production or deliveries. If the company were to deliver 1.8 million vehicles in 2023, that would result in 37% annual growth.

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Although we share official Tesla release notes, we are not affiliated with Tesla Motors. We are Tesla fans and supporters.

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Upcoming Release

View the release notes for the upcoming version 2023.2.0.5.

Confirmed by Elon

Take a look at features that Elon Musk has said will be coming soon.

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