Tesla Switches to Fabric, Removes Rear Screen and More in Model 3 in Mexico; Possibly Prepping for $25K Model

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Tesla has made some significant changes to the Model 3 Rear Wheel Drive that’s sold in Mexico – in fact, they’re launching an entirely new textile interior option for the market.

There are several significant changes throughout the interior, but let’s take a look at the new textile interior first.

Textile Seats

Tesla has been well-known for offering vegan leatherette in all its vehicles up to this point, as the only interior option – primarily in black and white for the Model 3 and Model Y, but also in cream for the Model S and Model X.

This new textile interior is now the only option available for the Model 3 RWD in Mexico – coming in gray and is listed as “Standard Fabric”. This textile-only option is also not available for the Long Range or Performance variants, or on any of the Model Y variants.

Tesla has introduced a fabric seating material

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Heating & Cooling Features Removed

Tesla didn’t stop at the seating material with these changes. They also included other, somewhat surprising changes throughout the interior. There is no longer a semi-premium interior for the RWD Model 3 in Mexico. This means all the Alcantara fabric has been replaced with the same textile fabric as the seats.

Alongside the lack of vegan leatherette, Tesla has also removed heated front and rear seats, as well as the heated steering wheel. This isn’t a surprising move in a warmer market like Mexico and it makes a lot of sense as Tesla makes its way into other markets that don’t require heated elements such as India and parts of Africa. However, due to the fabric textile seating, ventilated seats have also been removed from this model.

While we can see the advantages of not having leather-like seats in the Mexican heat, the lack of ventilated seats is a big disappointment.

Rear Screen Removed

The rear screen is also removed in this model

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There are a few changes that strike us as odd as well. The rear screen is powered by the same infotainment unit that powers the front screen, so the cost for Tesla is extremely minimal. Think of the rear screen as an additional display on a computer.

Tesla is unlikely to create a custom harness that would power the rear screen for this vehicle, so it’s possible the rear screen could be retrofitted in these models.

Ambient Lighting, Glass, and Speakers

In addition, Tesla has replaced its RGB ambient lighting with a white-only version. This seems like an odd choice, especially as in the open market, a color-capable LED strip versus a single-color strip is only the difference of a few dollars. While this may not provide significant savings for Tesla, it could be a tactic to upsell their higher trim levels that include the RGB feature.

The colorful, customizable ambient lighting feature likely helps sell quite a few cars. Tesla has recently been expanding the capabilities of its ambient lighting feature. With update 2024.26 Tesla added the ability to choose the brightness of the ambient lighting, as well as adding the option to have it only turn on at night time. Both of these features are expected to remain in this Mexican version. However, the ability for the ambient lighting to turn red when Service Mode is active won’t be available.

In addition to ambient lighting changes, Tesla is limiting its acoustic glass, which helps reduce road noise, to just the front windows.

The audio performance in this model has also been reduced. The number of speakers has gone from 17 down to 9. In addition, both subwoofers have been removed and there is now a single amplifier.

The Model 3 RWD's interior in Mexico

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Price

In exchange for dropping all of these changes, Tesla has dropped the price of the Model 3 RWD by $50,000 MXN – which is approximately $2,680 USD at the time of writing. We’re not sure that these significant changes will have a positive impact on Mexican sales. Tesla may be testing the waters with these changes, and if it bodes well for sales, we could see these changes be applied to other factories and markets as well.

Next-Gen Vehicle

Most interesting is that this new format could be the standard for Tesla’s upcoming next-generation vehicle – which is expected to be priced at around $25,000 USD. Earlier this year, Tesla pivoted and said that its next-gen vehicle will be built using the same manufacturing process as current models instead of the new unboxed process, which Tesla is now saving for the robotaxi.

The changes we’re seeing with this Mexican model will be something to keep an eye on, as the lack of a heated steering wheel and seat heating won’t be taken too well in most European countries or northern US states, nor in China and other colder climates. We’ll keep an eye out to see if this model makes its way into any other regions. For now, the Model 3 Long Range and Performance come with all the usual features we’ve come to expect.

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Tesla FSD in Europe: June Update

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The road to bringing FSD to Europe has been a long and complex one and filled with regulatory and bureaucratic hurdles. Elon Musk, as well as other members of Tesla’s AI team, have previously voiced their grievances with the regulatory approval process on X.

However, it appears that there is finally some progress in getting things moving with recent changes to upcoming autonomy regulations, but the process still seems slow.

Waiting on the Dutch

Elon commented on X recently, stating that Tesla is waiting for approval from Dutch authorities and then the EU to start rolling out FSD in Europe. Tesla is focusing on acquiring approvals from the Dutch transportation authority, which will provide them with the platform they need to gain broader acceptance in Europe. Outside of the Netherlands, Tesla is also conducting testing in Norway, which provides a couple of avenues for them to obtain national-level approval.

The frustration has been ongoing, with multiple committee meetings bringing up autonomy regulation but always pulling back at the last second before approving anything. The last meeting on Regulation 157, which governs Automated Lane Keeping Systems, concluded with authorities from the UK and Spain requesting additional time to analyze the data before reaching a conclusion.

Tesla, as well as Elon, have motioned several times for owners to reach out to their elected representatives to move the process forward, as it seems that Tesla’s own efforts are being stymied. 

This can seem odd, especially since Tesla has previously demoed FSD working exceptionally smoothly on European roads - and just did it again in Rome when they shared the video below on X.

FSD Supervised testing in Rome, Italy

Pending regulatory approval pic.twitter.com/TXh3uQIfrx

— Tesla Europe & Middle East (@teslaeurope) June 12, 2025

DCAS Phase 3

While the approval process has been slow, Kees Roelandschap pointed out that there may be a different regulatory step that could allow FSD to gain a foothold in Europe.

According to Kees, the European Commission is now taking a new approach to approving ADAS systems under the new DCAS Phase 3 regulations. The Commission is now seeking data from systems currently operational in the United States that can perform System-Initiated Maneuvers and don’t require hands-on intervention for every request.

This is key because those are two of the core functionalities that make FSD so usable, and it also means that there may not be a need to wait years for proper regulations to be written from scratch. Now, the Commission will be looking at real-world data based on existing, deployed technology, which could speed up the process immensely.

What This Means

This new, data-driven regulatory approach could be the path for Tesla to reach its previous target of September for European FSD. While the cogs of bureaucracy are ever slow, sometimes all it takes is a little data to have them turn a bit faster in this case.

Alongside specific countries granting approval for limited field testing with employees, there is some light at the end of the tunnel for FSD in Europe, and hopes are that a release will occur by the end of 2025. With Europe now looking to North America for how FSD is performing, Tesla’s Robotaxi results could also play a role.

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Tesla Launches 'TeslaVision' Contest With Big Prizes — See Last Year’s Winner [VIDEO]

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Tesla’s marketing has always been relatively unconventional, relying on word-of-mouth rather than traditional advertising. The passion of the owner’s community is always massive, but it is especially high now with the launch of the Robotaxi network just around the corner.

Tesla is now tapping into that spring of fan creativity and announced the TeslaVision video contest, with some seriously impressive prizes up for grabs.

Announcing the TeslaVision fan video showcase

Tesla owners & supporters have always been able to see our products & mission for what they truly are.

Your word of mouth has made Tesla what it is today.

The OGs will remember that in 2017, we held our first video contest. 8 years… pic.twitter.com/6pPpkqmqOH

— Tesla (@Tesla) June 10, 2025

The Contest

The core of the contest is simple. Create a video that shows how your Tesla gives you more in life. Tesla is looking for submissions that highlight themes of freedom, safety, fun, and convenience.

Prizes

The prizes definitely make this contest worth entering if you’re good with a camera and have some basic video editing abilities.

For North America, the prizes include a brand new Model Y AWD Long Range, alongside an all-expenses-paid trip to Austin for a tour of Giga Texas. The grand prize winner will also be able to custom order their Model Y, allowing them to select their preferred wheels and color.

The two runners-up won’t get a Model Y, but they’ll also enjoy an all-expenses-paid trip to Giga Texas for a tour of the factory.

The travel and tour include lodging in Austin for 2 nights, as well as economy-class round-trip tickets from anywhere in North America. Tesla will also provide a vehicle for use during the trip.

Hopefully, these winners will also have the opportunity to experience the Robotaxi network while they’re in Austin, as it’s expected to be opened to the public later this month.

Project Loveday

For long-time followers of Tesla, this contest may feel familiar. The contest is a direct throwback to the 2017 Project Loveday contest, which was inspired by a letter to Tesla from a 10-year-old aspiring marketer. That contest was won by MKBHD, with his submission below:

How to Enter

If you’re ready to start filming, here are the key pieces of information you’ll need to know:

• Video must be 90 seconds or less

• Video must be uploaded to YouTube with a public URL

• Make a post on X and Instagram tagging “@Tesla” and include the words “TeslaVision contest” in the post.

• Provide links to both social media posts in your submission to Tesla’s form

• Provide your personal details in the form

• You have until July 17th, 2025, or until Tesla receives 10,000 entries, whichever comes first.

You can find the official submission form and all region-specific details on Tesla's website.

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