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.

Cybertruck Deliveries Halted Due to Accelerator Pedal Issue

By Kevin Armstrong

Tesla has informed several Cybertruck reservation holders of delays in their delivery schedules. Several notifications were posted on the Cybertruck Owner’s Club, stating the need to postpone scheduled deliveries due to an "unexpected delay" without initially providing detailed explanations to customers.

Technical Issues Identified

However, that is where the Tesla community steps in. More posts on X and the Cybertruck Owner’s Forum revealed that the delays are linked to a design issue with the accelerator pedal of the Cybertruck. Unlike Tesla's other models, which feature a hanging accelerator pedal, the Cybertruck uses a floor-mounted design. This design requires the driver to apply forward and upward motion pressure.

It has been determined that the cover of the accelerator pedal can shift out of its designated position when subjected to excessive force. This malfunction has been attributed to the presence of lubricant residues left over from the manufacturing process.

Remedial Actions and Future Plans

Tesla has temporarily halted the delivery of all Cybertrucks and is currently working on a solution to redesign the pedal cover to eliminate lubricant residue. The new, improved covers are expected to be ready by April 19. Tesla plans to replace the faulty components in existing Cybertrucks at Service Centers shortly thereafter.

The company anticipates resuming Cybertruck deliveries on April 20, also known as 4-20. However, due to the pause in deliveries and the time required to distribute the new parts, some customers might experience further delays. Tesla is preparing for a staggered delivery schedule initially due to the limited availability of the newly designed pedal covers.

Despite these setbacks, Tesla continues to scale up the production of the Cybertruck at its Gigafactory in Austin, Texas. Recent aerial footage indicates that production rates have been nearing 1,000 units per week. The Cybertruck has also been featured in promotional events across several countries, including a stop at the Boston Marathon, showcasing its unique design and capabilities.

Tesla Reduces Price of FSD Subscription to $99 Per Month [Subscriptions Now Available in Canada Too!]

By Not a Tesla App Staff

Tesla just dropped its FSD subscription pricing dramatically in the U.S., lowering the cost from $199 to $99 per month. However, not everyone is thrilled with the new pricing.

For owners who bought the Enhanced Autopilot package for $6,000 USD, Tesla offered a lower-priced FSD subscription of $99, instead of $199. However, with this new FSD price reduction, EAP owners are no longer receiving a discount.

FSD Subscription Expansion

Currently, the FSD subscription is only available in the U.S., but plans for expansion are underway. Tesla's Rohan Patel recently announced that the subscription will soon be available in Canada, alongside the introduction of an annual plan for Premium Connectivity. 

This expansion into the Canadian market is anticipated to follow a similar pricing strategy, adjusted for the currency exchange rate, possibly setting the cost at approximately $140 CAD per month.

Update: Tesla has just announced that FSD subscriptions are now available in Canada! What’s even more surprising is the unexpectedly low subscription price of $99 CAD. Tesla took to X to announce the availability in Canada but unfortunately didn’t reveal any additional information regarding the subscriptions.

Is Buying FSD Still Worth It?

Despite the lowered subscription price, the outright purchase price for FSD remains steep at $12,000. This price point equates to subscribing to the service for over 10 years. Given that the average length of car ownership in the U.S. is about 8 years, this makes the current price of buying FSD unattractive to most. The saving grace of buying FSD is that you know what you're paying for the life of the vehicle and can avoid any potential subscription price increases.

Temporary Reduction or Long-term Strategy?

Tesla has not confirmed whether the price reduction is a temporary promotional tactic or a permanent adjustment. The timing coincides with Tesla's release of FSD v12 and its trial offer, suggesting that the company is keen on encouraging more drivers to experience FSD. This approach not only boosts user engagement but also accelerates the volume of data Tesla can collect to improve the system.

FSD With Referral Credits

Although Tesla hasn't adjusted the price of buying FSD, it is tweaking its referral program to accommodate the new price. Three months of FSD are now available through Tesla's referral program for 6,000 credits, reduced from the previous 12,000 credits.

Tesla's reduction in FSD in the U.S. and its planned expansion into Canada reflect a strategic initiative to make FSD more accessible and financially attractive to a broader audience. There's no doubt this change will increase the number of FSD subscriptions, but it'll be interesting to see how much. To break even, Tesla would need to double the number of subscriptions, but they likely have their eyes set much higher.

If you currently subscribe to FSD, Tesla has automatically reduced future payments to the lower $99 price point.

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