Tesla's very public secret, codenamed Highland, is now in showrooms in China. The company finally publicly revealed the product, as predicted for the beginning of September, and thanks to months of leaks, there weren't a lot of surprises. We’ve been reporting on leaks since the end of 2022, and it turns out our sources were accurate.
Tesla has again made a publicity splash without spending a dime on traditional advertising. Instead, the company gave some automotive YouTubers an early peak at the Model 3. As soon as the embargo was lifted, YouTube channels were filled with views — money in the content creators’ pocket and publicity for Tesla.
Ambient Lighting
Multicolor ambient LED interior lighting extends from the dash to the rear seats. If that’s not cool enough, this color appears to be adjustable to any shade you like, similar to how you can change the color of your Tesla on the screen and in the app. More than half of the refreshed Model 3 is made with new parts. It is also coming in two new colors in China, Ultra Red and Stealth Gray.
Range
The range has increased by 11 to 12 percent, which equates to the rear-wheel drive getting 346 miles (554 kilometers), and the dual motor long-range 423 miles (678 kilometres). This is thanks to several things, including the lighter Model 3, now the most aerodynamic Tesla in the lineup at a stunning 0.219 drag coefficient down from 0.225.
Suspension & Road Noise
Tesla officially announced the refreshed Model 3
Tesla
The upgraded suspension provides a more premium ride with new springs & dampers, new geometry on the front suspension, new bushings, and a new way they mount the subframe to the chassis. Moreover, the tires now have more cushioning for an improved ride.
Tesla has made a 30% decrease in wind and ambient noise, a 25% improvement in impact noise, and a 20% improvement in road noise. This has been achieved by using acoustic glass on the rear windows and back window (it was only on the front windows before), resulting in "360º acoustic glass". Additionally, more sound insulation has been added for a quieter ride.
Even Better Interior
However, you won’t be able to hear the quiet thanks to the new 17-speaker sound system, up from 14 speakers — complete with two subwoofers and two amplifiers.
We knew the interior was getting an overhaul, but we didn’t know about the upgraded ventilation system, allowing the passage side to be turned off and gain separate fan speeds. There are also two microphones for clearers calls and improved Wi-Fi connectivity. There is also an updated center console with real metal handles and a 65W USB-C charger that provides enough power to charge almost any USB-C device, includingarge a laptop. The center touchscreen has smaller bezels, higher contrast, and better responsiveness. Speaking of screens, there is an 8-inch touchscreen for rear passengers, just like the Model S and Model X.
Tesla officially announced the refreshed Model 3
Tesla
Front Bumper Camera
Tesla officially announced the refreshed Model 3
Tesla
The rumored front camera did not appear in any of the YouTube videos. As previously reported, the new Model 3 is still believed to have a front camera, just like the Cybertruck, and did appear with it in several photos. The front camera will eliminate that very real blind spot just in front of the bumper that the cameras in the windshield can’t see.
Details We Already Knew
Tesla officially announced the refreshed Model 3
Tesla
Now for a refresher about the Model 3 refresh. We’ve been talking about this vehicle since December of 2022, as the partially covered cars started popping up around California. Along the way we learned a lot, but we know that not all of you read about Tesla every day (shame, shame!). So here is a list with links to previous articles that discuss the features.
Tesla has been slashing the prices of the current Model 3, but the Highland is getting a price bump. With the cars already on the showroom floors in China, the RWD is 259,900 yuan, $35,800 USD, while the long-range is 295,900 yuan, $40,800 USD. Those prices are about a 10 percent increase — still, no word when the new Model 3 will be available in North America.
The Tesla Model 3 Highland is more than just a refresh; it's a complete overhaul that addresses several aspects of the vehicle, from aesthetics to performance and comfort. Introducing new colors, a more aerodynamic design, an enhanced sound system, and improved noise insulation are just a few of the many upgrades that make this Model 3 iteration stand out. Although there was a slight bump in the price, the host of improvements and added features justify the increase, offering more value to the customers. Time for an upgrade?
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Tesla is rolling out a fairly big update for its iOS and early-access-only Robotaxi app, delivering a suite of improvements that address user feedback from the initial launch last month. The update improves the user experience with increased flexibility, more information, and overall design polish.
The most prominent feature in this update is that Tesla now allows you to adjust your pickup location. Once a Robotaxi arrives at your pickup location, you have 15 minutes to start the ride. The app will now display the remaining time your Robotaxi will wait for you, counting down from 15:00. The wait time is also shown in the iOS Live Activity if your phone is on the lock screen.
How Adjustable Pickups Work
We previously speculated that Tesla had predetermined pickup locations, as the pickup location wasn’t always where the user was. Now, with the ability to adjust the pickup location, we can clearly see that Tesla has specific locations where users can be picked up.
Rather than allowing users to drop a pin anywhere on the map, the new feature works by having the user drag the map to their desired area. The app then presents a list of nearby, predetermined locations to choose from. Once a user selects a spot from this curated list, they hit “Confirm.” The pickup site can also be changed while the vehicle is en route.
This specific implementation raises an interesting question: Why limit users to predetermined spots? The answer likely lies in how Tesla utilizes fleet data to improve its service.
Here is the new Tesla Robotaxi pickup location adjustment feature.
While the app is still only available on iOS through Apple’s TestFlight program, invited users can download and update the app.
Tesla included these release notes in update 25.7.0 of the Robotaxi app:
You can now adjust pickup location
Display the remaining wait time at pickup in the app and Live Activity
Design improvements
Bug fixes and stability improvements
Nic Cruz Patane
Why Predetermined Pick Up Spots?
The use of predetermined pickup points is less of a limitation and more of a feature. These curated locations are almost certainly spots that Tesla’s fleet data has identified as optimal and safe for an autonomous vehicle to perform a pickup or drop-off.
This suggests that Tesla is methodically “mapping” its service area not just for calibration and validation of FSD builds but also to help perform the first and last 50-foot interactions that are critical to a safe and smooth ride-hailing experience.
An optimal pickup point likely has several key characteristics identified by the fleet, including:
A safe and clear pull-away area away from traffic
Good visibility for cameras, free of obstructions
Easy entry and exit paths for an autonomous vehicle
This change to pick-up locations reveals how Tesla’s Robotaxi Network is more than just Unsupervised FSD. There are a lot of moving parts, many of which Tesla recently implemented, and others that likely still need to be implemented, such as automated charging.
Frequent Updates
This latest update delivers a much-needed feature for adjusting pickup locations, but it also gives us a view into exactly what Tesla is doing with all the data it is collecting with its validation vehicles rolling around Austin, alongside its Robotaxi fleet.
Tesla is quickly iterating on its app and presumably the vehicle’s software to build a reliable and predictable network, using data to perfect every aspect of the experience, from the moment you hail the ride to the moment you step out of the car.
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.
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