Gary Zhou 
Tesla is continuing to progress on the installation of new Model 3 production lines at the Fremont Factory, which is being revamped for Project Highland.
Project Highland is a codename for Tesla’s planned revamp of the Model 3 mass-market sedan, which is reportedly receiving new infotainment upgrades, interior simplifications, and a reduction of components.
Tesla has been working on the project since mid-2021, according to filings seen by Teslarati. Now we can confirm the project is continuing to move forward.
We reported in mid-December that Tesla had demolished previous Model 3 production Hang On Lines, a type of assembly line the company partially utilizes for manufacturing.
Tesla has completed the demolition and is moving forward with installing manufacturing equipment, Teslarati has learned through public filings.
Tesla filed for revisions to portions of the line as recently as Friday. While it is a minor development, it indicates that the automaker is progressing on the Model 3 revamp.
Several Model 3 Highland production candidates have been spotted in California recently, and earlier in January, the vehicles were spotted performing on-road testing for the first time since Tesla started the Highland project.
Tesla admitted during the company’s recent Earnings Call that there are new products in the pipeline, but CEO Elon Musk and other executives did not go into any detail regarding what is potentially on the way.
We speculated that Tesla could manufacture a van, and potentially enter other sectors. However, with the electric vehicle movement on the upswing and becoming more popular, companies are looking to offer vehicles at an affordable price point. Tesla has plans to discuss its next-gen platform at the March 1 Investor Day.
While the next-gen platform could be different from what Tesla will do with the Model 3, it is no secret that the automaker has been attempting to develop a more affordable vehicle design. Tesla has softly hinted at the possibility of a $25,000 mass-market vehicle over the past few years.
The Model 3 design will likely stay the same, but the improvements on vehicle complexity are likely an attempt to improve affordability.
Tesla slashed vehicle prices by as much as $13,000 in the United States in early January. The move increased sales and catalyzed the company’s movement toward its 1.8 million unit production goal for the year.
