A leaked photo shows off the refresh Model 3, known internally as Project Highland
ffiarpg/Reddit
The Tesla Model 3 has become an icon in the electric vehicle market, so any changes to its design are sure to generate buzz. A recently leaked image on Reddit confirms a significant redesign of the Model 3's headlights, showcasing a daring new look that will capture attention.
This bold change to such a popular vehicle signals Tesla's commitment to innovation and continuous improvement. Alongside the new headlights, the picture gives away a few other details. The Model 3 refresh, codenamed Highland, will see many other updates. Here's a summary of the significant changes expected.
Striking Headlight Redesign
The Reddit image offers a clear view of the updated Model 3's striking new headlights. This leaked image matches up with the details we received and reported on in our article, Project Highland Exposed. It also matches up with incognito Model 3s that have covered headlights, further validating the leaked image's authenticity.
The image also shows that the foglights are gone. It's unclear if they've been moved inside the new headlight or removed altogether. It's also worth noting that the front bumper shows no sign of ultra sonic sensors and Tesla will continue to rely vision for park assist. The Model 3 refresh is expected to have a camera in the lower-center of the front bumper, but unfortunately we're not able to see that from this photo as well.
The side mirror also appears slightly narrower than the current mirrors. Additionally, there is no "T" logo on the hood. Chief designer Franz von Holzhausen has talked about having less branding on future Teslas.
Additional Updates Expected for Model 3 Highland
We put together a story of all the changes that are part of the Highland and released it a few weeks ago. Here is a summary of that story, detailing the other new elements the leaked image didn't show.
Bumper Camera: A redesigned front bumper will house a single camera in the center area of the lower-vent area, addressing concerns about detecting objects in camera blind spots.
Rear Bumper: While the reason remains unclear, the rear bumper is also being redesigned.
Additional Cameras: The Highland will feature three new cameras — one in the front bumper and two on the sides of the vehicle, possibly aimed at improving visibility at certain intersections.
Sensors: The exterior temperature sensor will be removed and replaced with a GPS-based system. Additionally, Tesla is working on improving the GPS module for more accurate location detection.
Interior: Inside, the wood trim will be replaced with a fabric finish, and the dash will receive a facelift, though details are scarce.
With a bold new headlight design leading the way, the Model 3 Highland updates show Tesla's dedication to evolving its vehicles and staying ahead of the competition. The mix of cost-cutting measures and significant improvements, such as the addition of new cameras and updated hardware, will likely generate excitement among customers. Production is expected to begin in the third quarter, with Model Y's Project Juniper set to follow.
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The massive legislative effort titled the "Big Beautiful Bill" is taking direct aim at what has become one of Tesla’s most critical and profitable revenue streams: the sale of US regulatory credits. The bill could eliminate billions of dollars from Tesla’s bottom line each year and will slow down the transition to electric vehicles in the US.
The financial stakes for Tesla are absolutely immense. In 2024, Tesla generated $2.76 billion from selling these credits. This high-margin revenue was the sole reason Tesla posted a profit in Q1 2025; without the $595 million from regulatory credits, Tesla’s reported $409 million in profit would have been a $189 million loss.
How the ZEV Credit System Works
Zero-Emission Vehicle (ZEV) credits are part of state-level programs, led by California, designed to accelerate the adoption of electric vehicles. Each year, automakers are required to hold a certain number of ZEV credits, with the amount based on their total vehicle sales within that state. Under this system, automakers that fail to sell a certain percentage of zero-emission vehicles must either pay a significant fine or purchase credits from a company that exceeds the mandate.
Automakers who fail to sell enough EVs to meet their quota have a deficit and face two choices: pay a hefty fine to the state government for each missing credit (for example, $5,000 per credit in California) or buy credits from a company with a surplus.
As an all-EV company, Tesla generates a massive surplus of these credits. It can then turn around and sell them to legacy automakers at prices cheaper than the fine, creating a win-win scenario: the legacy automaker avoids a larger penalty, and Tesla gains a lucrative, near-pure-profit revenue stream.
This new bill will dismantle this by eliminating the financial penalties for non-compliance, which would effectively make Tesla’s credits worthless. While the ZEV program is a state law, the Big Beautiful Bill will fully eliminate the penalties at a federal level.
A Multi-Billion Dollar Impact
The removal of US ZEGV credits would be a severe blow to Tesla’s financials. One JPMorgan analyst estimated that the move could reduce Tesla’s earnings by over 50%, representing a potential annual loss of $2 billion. While Tesla also earns similar credits in Europe and China, analysts suggest that 80-90% of its credit revenue in Q1 2025 came from US programs.
Why the Program Exists
While the impact on Tesla would be direct and immediate, the credit system has a wider purpose. It creates a strong financial incentive for legacy automakers to develop and accelerate their zero-emission vehicle programs, whether it’s hydrogen, electric, or another alternative.
Eliminating the need for these credits would remove that financial pressure. This could allow traditional automakers to slow their EV transition in the US without the fear of a financial penalty, potentially leading to fewer EV choices for consumers and a slower path to vehicle electrification in the country.
Big, But Not Beautiful
On Sunday Morning TV, Elon Musk was asked his thoughts on the Big Beautiful Bill. They were pretty simple. A bill could be big, or it could be beautiful - I don’t know if it can be both, Musk stated.
Elon Musk in new interview: "I was disappointed to see the massive spending bill, frankly, which increases the budget deficit and undermines the work the DOGE team is doing. I think a bill could be big, or it could be beautiful—I don't know if it can be both." pic.twitter.com/DnyjHN7xCY
The bill poses a threat to Tesla’s bottom line and to the adoption of EVs in the US market, where automakers will no longer have a financial incentive to transition to cleaner vehicles, a market they’ve regularly struggled in when competing against Tesla.
Tesla will have to work carefully in the future to cut expenses to remain profitable after the elimination of these regulatory credits.
Tesla is rolling out a thoughtful and much-needed update to its in-vehicle Supercharger UI. The update is designed to provide drivers with details about Superchargers and their locations.
The update will add new icons and contextual messages to clarify Supercharger access requirements or restrictions, such as paid parking. There’s nothing worse than navigating to a Supercharger only to find out it's only for customers, requires paid parking, or some other service.
The new details will appear in various locations, including the Supercharger list, Supercharger module, and above the navigation directions when navigating to a Supercharger.
The new Supercharger icons will indicate the following requirements:
Valet-only Parking
Pay to Park
Access Codes
Parking Floor (the floor the Supercharge is on in a parking garage)
These icons are initially displayed when you’re searching for a Supercharger in the list of Superchargers. Additionally, when navigating to a site that includes any of the above, your vehicle will now display specific alerts for access requirements.
Access Codes and Parking Floor information will be provided above the navigation card when you reach the destination.
Solving Common Frustrations
Not a Tesla App
While these may seem like minor tweaks, they are a direct solution to some long-standing and common frustrations for many Tesla owners. Many drivers have likely experienced the scenario of following navigation to an unfamiliar urban Supercharger, only to arrive and discover it’s buried deep within a paid parking garage, with no advance warning of the fees or specific floor location.
This update provides all the critical information upfront so that drivers can make informed decisions on where they would like to charge. No more surprise parking fees, no circling a multi-level garage at 3% battery, desperately searching for the red and white Supercharger signs, and no more getting stuck searching for an access code to charge.
Little Details Matter
These Supercharger updates are the definition of quality-of-life improvements. Little details that make a big difference in usability.
As the Supercharger network continues its massive expansion into more complex and densely populated urban centers, providing this kind of granular, logistical data becomes increasingly important.
Release Date
While Tesla hasn’t announced when these features will be added, they’ll likely be included in the next major Tesla software update, presumably update 2025.24 or 2025.26.
The Tesla app was recently updated to v4.46.5 and added the ability to restrict location visibility for other drivers of the vehicle. Although the app update didn’t include these Supercharger updates, we expect these new Supercharger details to also be added to the Tesla app soon.
