Gary Zhou 
Key Points
- 🚗 Tesla China is gearing up for the launch of the Model 3 Project Highland update.
- 💰 Customers are offered the choice between acquiring the current-gen Model 3 with incentives or waiting for the Model 3 Project Highland.
- 💡 Tesla China is making the current Model 3 more appealing with insurance subsidies and incentives.
- 📅 First deliveries of the revamped Model 3 are expected as early as September.
- 💸 Customers paying RMB 1,000 can reserve either the current-gen Model 3 with incentives or the upcoming Project Highland version.
- ⏰ Those waiting for the Project Highland version lock in the current vehicle price and still receive referral incentives.
- 📊 More Chinese customers are reportedly opting to wait for the Project Highland option.
- 🛠️ Project Highland update includes exterior changes, new infotainment based on Model S and Model X, and cost-efficient production.
While Tesla has maintained a level of secrecy surrounding the much-anticipated Project Highland update for the Model 3, recent actions by Tesla China hint at an imminent release of the forthcoming vehicle.
Notably, Tesla China has dedicated substantial efforts to enhance the appeal of the existing Model 3 version for potential buyers. The company extended an RMB 8,000 insurance subsidy to inventory Model 3 vehicles, and furthermore, introduced an elevated insurance incentive aimed at promoting the adoption of the all-electric sedan.
As per a recent report from China Securities Journal, Tesla China is currently setting the stage for the first deliveries of the revamped Model 3, which will reportedly be held as early as September. Citing a salesperson from the electric vehicle maker, the publication noted that customers today are reportedly being encouraged by Tesla to pay RMB 1,000 (around $137) for a Model 3 reservation.
Customers who pay this amount are reportedly given the option of taking delivery of a current generation Tesla Model 3 with all the incentives that are being offered today, or waiting for a Model 3 Project Highland unit. Customers who reportedly opt to wait for a Project Highland unit will still be able to take advantage of referral incentives, but not the other perks offered for the vehicle today.
The publication also reported that customers who choose to wait for the Model 3 Project Highland are locked into the current price of the all-electric vehicle. This suggests that even if Tesla launches the new Model 3 at a higher price, those who have placed reservations for the vehicle could acquire them for the price of the current-generation Model 3. China Securities Journal noted that so far, more customers in China are opting to wait for the Project Highland option.
The Model 3’s Project Highland update is expected to introduce a number of key changes to the vehicle, from a revamped exterior to a new infotainment system that seems to be based on the Model S and Model X. The vehicle is reportedly designed so that it could be produced in a more cost-efficient manner as well.
