A late-night Elon Musk post on X has this writer wondering if the Matrix has a glitch. For over a year, credible Tesla-focused websites and the mainstream media have referred to the Tesla Model 3 as the "Highland." But the company’s CEO says the Highland name “is not real,” although it has been seen in various Tesla documents. The cryptic message comes just 24 hours after the new Model 3 launched in North America. Is Musk simply joking, or is there a deeper meaning to his words?
Reuters was the first to use the word Highland. On November 28, 2022, the news outlet ran an “exclusive” story citing “four people with knowledge of the effort” of a revamped version of Model 3 codenamed "Highland." The name made sense. Although the exact origin remains unknown, there were intriguing theories:
Historical Reference to Ford: Some believe "Highland" might refer to Ford Motor Co's Highland Park plant, the birthplace of Ford's revolutionary assembly line.
Cinematic Nod: Others speculate that the name could be a homage to the 1986 film "Highlander", known for its immortals' battle and the iconic line, "there can only be one." This theory aligns with Musk's penchant for movie references and quirky humor.
A few weeks after the report, the mysterious partially covered Model 3s appeared around California. The name Highland took off from there.
Musk vs. Mainstream Media: A Turbulent Narrative
Elon Musk's relationship with the mainstream media has been tumultuous, marked by a series of confrontations and criticisms. His stance has been particularly conspicuous since he acquired Twitter. This ongoing battle with the press can be seen as a backdrop to the "Highland" mystery, casting Musk's latest tweet in a different light.
Perhaps his dismissive comment about the "Highland" codename might not be a straightforward denial but a nuanced swipe at media credibility. Considering that Reuters, a major news outlet, was the first to report on Highland, it could be interpreted as a continuation of his broader skepticism towards media reporting, mainly when it involves narratives about Tesla.
This dynamic adds an intriguing layer to the story, where the "truth" of the Model 3 "Highland" becomes not just a matter of fact but also a symbol in the larger narrative of Musk's complex relationship with the media. As Musk continues to engage in this media tug-of-war, each tweet and statement becomes a potential chess move in an ongoing battle of narratives.
Tesla Community Reaction
Seriousness aside, the internet did not fail to bring a few laughs in the replies to Musk’s post. Some played with the idea of it being part of a grand simulation, adding a touch of sci-fi flair to the debate. Others jokingly asked if this was all just a clever trick or even a plot twist worthy of a movie. The popular “TMFINR” meme showed up a few times.
A few users leaned into humor and parody, echoing the playful skepticism that often accompanies Musk's cryptic messages. Amidst the laughter, there were genuine queries and theories, with several pondering if "Highland" was just an internal project name or something more.
Rumors and conspiracy theories weren't far behind, as some speculated about hidden meanings and possible secret projects. This led to various interpretations, from outright dismissal to earnest theorizing. Could it also have been used to identify who was leaking information? There are a lot of leaks! YoursYour's truly was reminded of a classic Creed line from The Office:
Overall, the community's response was a lively mix of jest, confusion, and curiosity, showcasing the engaging and speculative environment that Musk's tweets often create. It's a unique relationship between Musk, his projects, and his audience, where a single tweet can ignite a spectrum of imaginative and playful discussions.
The Model 3 "Highland" story continues to blend mystery and speculation, fueled by Musk's latest remarks. The “Highland” name was used internally, as it has shown up in several internal documents, so Musk's post causes some confusion. Does he possibly mean that Highland isn’t a part of the (final) product’s name and shouldn’t be used by media to differentiate it from the previous generation?
Whether a clever ruse, a misunderstood codename, or a media misinterpretation, it is a fascinating example of Tesla's cultural impact. Dare we ask if Juniper is real?
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In this article, we’ll cover Tesla’s updates on Optimus, batteries, and Tesla Energy.
Optimus
Tesla has been working away on their humanoid robot and continues to make progress in software and hardware.
First, Tesla is preparing the Fremont factory for the Optimus pilot production line, which is scheduled for completion later this year. Once it is, wider deployments of Optimus for internal use within Tesla’s facilities are expected as well. Tesla aims to have several thousand Optimus units working in its North American factories by the end of the year once the pilot production line is operational.
Tesla’s goals for production remain extremely lofty - 1 million units per year by 2030. However, they could face some challenges when ramping production.
Key components like the shoulder actuators use specialized permanent and rare-earth magnets, which are currently sourced from China. Due to recent Chinese restrictions on the overseas sale of these magnets, Tesla is seeking an exemption or alternative suppliers. They have not yet looked into modifying the shoulder actuator but will likely do so if they cannot obtain the necessary materials.
Batteries
Batteries are another item that Tesla’s teams have been working on behind the scenes for years now. The second generation of the 4680 - the Cybercell - has been IRA-compliant for some time now. This means that the Cybertruck is eligible for the US Federal EV rebate.
Tesla also achieved the lowest cost-per-kWh of any of its cells with the 4680 battery - and it is potentially one of the cheapest cells being manufactured by any vehicle battery manufacturer at this point. With dry-cathode still being worked on, Tesla may be able to squeeze more optimizations and cost efficiencies from the 4680 cells.
Additionally, Tesla is progressing with its plans for lithium refining and cathode production in the US, both of which are scheduled to commence in 2025. While the company says they’re no longer supply-constrained for non-LFP vehicle batteries, on-shoring production and sourcing critical minerals from nations outside of China will be key.
LFP batteries continue to be supply-constrained, namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla can’t obtain enough and is considering potentially building an LFP production facility in North America.
Energy
Tesla’s energy division is still experiencing some of the highest growth of any of its divisions. Year over year, Tesla saw a 154% increase in energy storage deployments, including both Megapack and Powerwall - for a total of 10.4 GWh deployed in just Q1 2025. While deliveries in energy storage remain volatile due to the nature of Megapack installations, Tesla expects growth to continue rapidly in this segment.
Tesla also deployed 1GWh of Powerwall 3 residential storage this quarter, marking its strongest quarter. Powerwall 3 has received positive feedback from customers, many of whom appreciate its new capabilities with its built-in inverter for solar.
Megapack is continuing to see demand increases, currently highlighted by utility-scale Megapack systems, as well as data centers requiring stable power delivery. Megafactory Shanghai is also online now and producing Megapacks - with an annual production capacity of 20GWh today and up to 40GWh in the future. The site has also produced over 100 Megapacks this quarter, which are all awaiting delivery.
There was a lot of interesting news from Tesla’s Q1 2025 Earnings Call, covering everything from FSD and Robotaxi - to the less glamorous but equally important Megapack and Powerwall.
Tesla is heavily leaning into artificial intelligence, and its insurance offering is just another example of how it’s improving its product or lowering costs by leveraging AI.
Tesla recently started offering an insurance discount in select states when drivers use FSD for at least 50% of their drives and now it’s introducing an AI to help handle customer claims.
Tesla has developed an in-house voiced AI agent that can assist customers in handling simple support requests for Tesla Insurance.
For customers calling in from those states, the new AI agent provides a unique way to address the most common support calls. And it’s not just answering common questions but actually making requested changes to the owner’s account.
Policy Changes
The first key item is that it automates policy changes. Simple policy updates, including adjusting your deductible or coverage limits, are now done via AI. For policyholders who are simply looking to make quick changes and don’t have any questions, this makes the process a lot quicker by not having to wait for a representative. Tesla isn’t eliminating representatives, but this could reduce the number of representatives required or reduce wait times.
Continue Where You Left Off
The second item here, highlighted by Raj Jegannathan from Tesla’s internal IT team, is that Tesla’s AI agent is able to offer summaries of the user’s last interaction with Tesla Insurance. It will summarize your last interaction and provide assistance on that particular topic if you need to continue it. That means that you don’t have to wait for a human to review your file - the AI will kick off right where you left off.
Tesla appears to be focused on improving efficiency and making support more accessible. While actual items like claims are left up to humans due to their inherently complex nature, this helps free up employees to handle more complex items. While there’s no doubt Tesla will continue to develop this AI like they do everything else, we may soon see it take on even more tasks.
More AI
This isn’t the first AI agent that Tesla has demoed - there is now a chat-based AI sales agent available on the front page of Tesla’s website, which is able to answer common questions on Tesla vehicles.
Tesla has also been improving their AI support tool available in the Tesla App is able to provide feedback on common issues and also guide users towards either solving the problem or placing a support request.
Tesla’s strategy here is to influence the cost-heavy areas associated with having humans address simple requests and instead leverage AI, which can offer instant answers and reduce support costs.
Roll Out to More States
While this new AI is currently limited to just 12 states, it is likely to follow Tesla Insurance’s expansion. Insurance seems to have been at a bit of a standstill lately. Tesla continues to improve features such as the improvements to Safety Score V2.2, but we haven’t seen Tesla roll out support to new states since it added Minnesota in November of 2022.
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