Brems started her video by telling how she bought her Model 3. Tesla told her she would have to wait until December to get her EV, but she took delivery in just two weeks, which she now finds suspiciously early. There are some possible explanations for that: she could have gotten a car someone else refused, or Tesla’s backlog is not as long as it says. Recently, the company was accused of speeding delivery of vehicles with Full Self-Driving included – a $15,000 plus for beta software most people will never get to use.

The doctor was driving from Los Angeles to San Diego on October 7. She activated Autosteer for the first time and said the Model 3 was changing lanes every ten seconds or so. When she reached Camp Pendleton after stopping in Irvine for a late lunch, a car in from of hers slowed down. That was the trigger for her car to also decelerate and not move again.

An error popped up saying Autopilot was disengaged, but it was pretty much it. There was no warning that the vehicle was losing power, was out of charge, or anything like that. Before leaving, Brems made sure that her car would warn her if she had to stop in a Supercharger to get more power. It never advised her to do so, and, when the vehicle stalled on the left lane of I-5 after a blind corner, there was very little she could do apart from calling 911.


Shifting gears, braking, or accelerating did not make the car move. A hard reset also made no difference. While Brems was trying that, people would overtake her car on the shoulder or the right lane. When the person who was with her in the car called 911, the police made an extremely urgent request for a tow truck using her AAA number. A few minutes later, a policeman arrived and helped divert traffic and push the Model 3 to the shoulder.

Brems saw in the Tesla app that there was a service for roadside assistance for vehicles that stopped on the road. She selected it and received a text message 15 minutes later suggesting she call 911. She clarified she had just done that and that a tow truck was on its way. The person replying said they would close the request and told Brems to drop the car at the San Diego service center, which would be open on Monday.

The problem was that the doctor lives in Santa Monica, where Tesla has another service center. She asked if she could take her car there, but the request was already closed. She had to open a new one to ask about that and was informed that she could leave her car at the lot there and drop the keys in a drop box for the vehicle to be checked the following Monday, October 10. When the tow truck driver got there, the lot was closed, and there was no drop box for the keys. The vehicle was parked in front of the gates, and the truck driver left the keys under a trash box.


While she waited for the Tesla Service Center to confirm it had her car, Brems followed what happened to it with the Tesla app. The battery pack charge dropped radically from 140 miles to 29 miles until the service center said it was checking the Model 3. Sentry Mode was deactivated when the charge dropped to such a low level it could not power it anymore.

According to the Tesla Service Center, Brems was to blame because the vehicle failed for lack of charge – despite still having 29 miles of range when they analyzed the EV. The doctor tried to argue that it had 140 miles and about 40% of charge left. She showed them videos and pictures that proved that. Yet, she recorded a lady saying that she had to charge her car even after fully charging it at night, driving 90 miles, and having 140 miles left to drive when her vehicle stopped in the middle of the freeway.

The Tesla clerk insists that Brems should have checked the percentage because “even if you think you have 200-something miles in range, your battery percent life would be something different.” Yes, that’s on tape. The doctor was elegant enough to sum that up simply by saying: “That’s not normal.”


Brems says that she would have gotten a warning about low battery if that was the case: she didn’t. On top of that, she had the mode on to reroute her to a charging station in case that was necessary. The car did not require her to go anywhere. It just stopped. The doctor also said that she can’t understand why she should go with the battery percentage instead of the miles estimate if Tesla itself delivered the car in that mode.

After this weird exchange with the company, Brems left the vehicle in the Tesla Service Center because she wants to return it. Tesla refuses to get the car back and return her money, while the doctor does not think it is an option to sell the vehicle with the defect it presents: she rightfully fears someone else may face the same life-threatening situation she did.


We contacted Brems to try to learn what next steps she intends to follow. Meanwhile, she sees only two possible explanations for what happened, and none of them is good for the EV company. The first is that the vehicle’s range estimator is indeed “wildly inaccurate” – as the EV maker wants her to believe. That would mean her Model 3“holds a third as much as the average Tesla.” In that case, it needs at least a battery pack replacement.

The other scenario is that there is “a really dangerous malfunction happening in cars” like hers, and she wants a reasonable answer for what it is. Now that her story is public, she may get one, as well as a request to sign a non-disclosure agreement if Tesla agrees to buy the Model 3 back. It would not be the first time.

Now that her story is public, she may get one, as well as a request to sign a non-disclosure agreement if Tesla agrees to buy the Model 3 back. It would not be the first time.

Dana Brems’ story with her brand-new Tesla Model 3 got quickly famous for how serious it was. She had driven it for a few hundred miles when it stopped in the left lane of the I-5 freeway after a blind corner. That could have caused a massive crash. Luckily, that didn’t happen. Tesla told her the problem was a low charge, which she proved was not the case. The EV maker finally gave her a proper diagnostic: a bad rear drive unit.Unfortunately, Brems did not get back to us after we sent her several messages to learn more about her case. In her original video, the doctor said she tried to return the car, but Tesla would not buy it back. We asked her if she was planning to sue the EV maker to get her money back and if other Model 3 owners with similar issues had contacted her about that. She didn’t answer, but now we understand why.

On the same day she published her video complaining about the whole situation, Tesla decided to check her car again, and – surprise, surprise – it discovered the rear drive unit needed to be replaced because it had a bad inverter. We’d ask her if that made her feel safe to drive again if she got in contact with us or if she would still try to get rid of her car.


Her Model 3 only qualifies as a lemon in California “if the manufacturer or dealer can’t repair a serious warranty defect in your vehicle after a ‘reasonable’ number of attempts.” According to California’s Lemon Law Presumption, that means four or more attempts or more than 30 days in the shop for repairs covered by the warranty.

Brems said that her car went from 140 miles of range to 29 miles until the service center said it was checking the EV. Sentry Mode was on, but it deactivated when the charge dropped to such a low level the battery pack could not power it anymore. Tesla used that to say the doctor was to blame.

She argued that she still had plenty of range left, but the Tesla clerk said she should have charged the car because “even if you think you have 200-something miles in range, your battery percent life would be something different.” Brems recorded that to prove she really had to hear that.


Sadly, there is no guarantee she will not have the same problem again, especially with how Tesla dealt with her. Rear drive unit issues are not new, and the EV maker has done very little to explain or fix them – at least in the U.S.

On April 5, ConsumerAffairs warned that Model Y EVs were having rear motor failures at an alarming rate. Coincidence or not, Tesla recalled 127,785 Model 3 units in China on April 7 due to a rear drive unit inverter problem – the same issue Brems’ car presented. In the U.S., Tesla just warned the National Highway Traffic Safety Administration (NHTSA) on April 8 but presented no plan to do the same in America.

Tesla is developing a revamped version of the Model 3, according to four people with knowledge of the effort, as the top EV maker aims to cut production costs and boost the appeal of the five-year-old electric sedan.

One focus of the redesign codenamed "Highland" is to reduce the number of components and complexity in the interior of the Model 3 while focusing on features that Tesla buyers value, including the display, according to the people, who asked not to be named because the revamp has not been announced.

The previously unreported redesign comes as the electric sedan faces increased competition from models from the likes of China's BYD, Hyundai and coming releases from other major automakers.

The revamp of the battery-powered sedan, which could also include some changes to the Model 3’s exterior and powertrain performance, will go into production at Tesla’s factory in Shanghai and the company’s Fremont, California plant, two of the people said. Tesla’s Shanghai Gigafactory will put the redesigned Model 3 into production in the third quarter of 2023, they said.

It was not clear when production would start at the Fremont plant or how large a cost savings Tesla would achieve from the redesign as it works with suppliers.

The effort spotlights an approach to vehicle development pioneered by Tesla and now being copied by other automakers, including Toyota Motor, that removes complexity – and cost – in production.

It is also an example of a key project at Tesla that has rolled ahead even as Chief Executive Elon Musk has focused on his troubled acquisition of Twitter in recent months, an area of concern for Tesla investors.

Tesla did not respond to a written request for comment from Reuters.

Change you can see

The redesign for the Model 3 builds on the revamp of the Model S — Tesla’s premium EV sedan — that was released last year. That redesign added an airplane-style yoke in place of a traditional steering wheel and removed buttons and traditional air vents as part of a minimalist interior where the centerpiece is a 17-inch electronic display.

The Model 3, Tesla’s cheapest EV starting at just under $47,000 in the United States, had been the automaker’s best-seller but is being overtaken by the Model Y crossover. With only four models in production, styling changes to any part of Tesla’s lineup carry an outsized importance compared to established automakers.

Ed Kim, president of AutoPacific Group, which tracks market trends and production, said the current Model 3 has already been updated from the version that first went on sale in 2017 because of the way Tesla updates battery performance, information and entertainment options through software, even if it still looks the same.

“Having said that, consumers still tend to equate visual changes with newness,” he said. “Tesla knows visually tangible changes are in order.”

“The upcoming changes that potential customers can see and feel will be very important in ensuring that EV customers still have Tesla at the top of their minds as truly excellent alternatives to Tesla are starting to flood the market,” he said.

Keep it simple

Musk has pushed a simplified approach to design and production at Tesla that the Highland project extends, said the people with knowledge of the development.

Tesla has pioneered the use of massive casting machines known as Giga Press and built by IDRA Group in Italy to make single, larger pieces of a vehicle in assembly, reducing cost and speeding production. It has also designed a structural battery pack that does away with more expensive modules.

Musk has said Tesla is looking to drive costs down through simplification and working on a small-car platform that would be half the cost of the Model 3.

"Over and over, we found parts that are not needed. They were put in there just in case or by mistake. We eliminated so many parts from a car that did nothing," Musk said in an interview at a Baron Funds conference earlier in the month.

The approach is part of what has made Tesla the most profitable electric vehicle maker while many rivals are still running at a loss. In the third quarter, Tesla made a profit of just over $9,500 for every car sold, compared to roughly $1,300 for Toyota, according to disclosures by both companies.

The revamp of the Model 3 comes at a time when sales in China, its second-largest market after the United States, are under pressure. Sales for the Model 3 in China fell 9% in the first ten months from a year earlier, while BYD's Qin and Han electric sedans outsold the Model 3, according to China Passenger Car Association.

To boost sales, Tesla cut prices for Model 3 and Model Y in China by as much as 9% in October and offered an additional rebate for buyers who took immediate delivery.

Sam Fiorani, who tracks Tesla and industry-wide production at Auto Forecast Solutions, said the upcoming changes to the Model 3, which he understood were coming, showed the power of Tesla’s approach in taking out complexity.

“They are always looking for ways to make EVs profitable, and more profitable,” he said.

Tesla is reportedly working on a revamped Model 3 variant to make the most affordable car in its lineup even more affordable. Besides the under-the-hood optimizations, a recently-spotted prototype sports an intriguing detail at the front.
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Tesla launched the Model 3 as its most affordable vehicle in 2017, and, despite constant updates applied to the car, it admits the sedan has gone a little long in the tooth. Unlike traditional carmakers, which usually launch new models on a 6-year schedule, with a mild refresh mid-life, Tesla offered the same design with very few changes for its models. Even the veteran Model S looks pretty much as it did at launch ten years ago, despite a thoroughly upgraded cabin introduced last year.

But just because its car design never changes, it doesn’t mean the cars are the same. Tesla rolled out updates in many areas, including manufacturing and platform, as seen on its Model Y, built with megacastings and a structural battery pack. Tesla also uses different battery types and chemistries throughout its vehicle range, meaning that, although Model Ys made at different factories look the same, they have very distinct characteristics.

Nevertheless, a Tesla enthusiast shared pictures of a camouflaged Model 3 they snapped in a parking garage in Santa Cruz, California. This might indicate that Tesla is shooting for a design change with the Model 3 refresh, enough that it wants it hidden from the public eye. There’s another interesting thing to note, though, as the updated Model 3 appears set to launch on the model’s sixth-year anniversary. This could be Tesla aligning to the new-model-every-6-year industry standard.

We don’t know what lies beneath the black fabric front and rear, but we don’t expect the Tesla design team to overstress their job. Nevertheless, an intriguing detail had the internet buzzing. Under the headlight cover is a barely-visible black dot that looks much like a video camera. It could be just a shadow on the camouflage, but placing a camera there makes a lot of sense. If it didn’t occur to the Tesla team already, they should seriously consider installing one.

The under-the-windshield camera can only help so much with close-proximity obstacles. In light of Tesla giving up on ultrasonic sensors, this might pose a problem. Having cameras closer to the front (and the ground) can help mitigate this and offer improved vision when creeping forward at junctions. As you can see, the headlight camo is held in place with velcro, so it is easy to remove when driving.

While there’s a lot to speculate here, it comes at a time when other reports also indicate a refresh to the Model 3 is imminent. Besides the intriguing details in these pictures, we expect the refreshed model to feature megacastings front and rear like the Model Y and also a structural battery pack. Hopefully, the steering yoke introduced with the Model S/Model X refresh won’t plague the Model 3 as well.

It's no secret that Tesla is working on a redesigned Model 3 under "Project Highland," as we've already seen it testing camouflaged prototypes of the new model. Now we also have the first picture of the car, showing a Roadster-like front end with a sleeker design.



In November last year, the first rumors about a revamped Tesla Model 3 made the headlines. Based on that, Tesla would follow a simple recipe to optimize its most affordable model's production and cost structure. As we've seen this done to the Model S in a recent refresh, we expected this to translate into minimal design changes, more components taken off the table, and lower-quality materials in the cabin.

This might not appeal to those that want Tesla to remain a niche luxury carmaker. Still, it will allow it to drop prices without affecting profitability. For those that didn't read the memo, Tesla aims for extreme scale, which usually means mass-market, affordable cars, not exclusivity. The only question now is whether Project Highland would see more success than the refreshed Model S, considering the latter recorded disappointing sales in the first quarter, despite massive price cuts.

Last December, we saw the first prototype of the upcoming Model 3 with the front and rear sections covered. This hinted at modifications in these areas, which is typical for a refreshed model. In the following months, more Model 3 prototypes were caught on camera, so we've got a clearer understanding of what Tesla has in store. We discovered the new model would have a less prominent bumper and a redesigned repeater camera flare.

The first leaked picture of the refreshed Model 3 confirms all these suppositions. The photo shared on Reddit shows a sleek design that reminds us of the Tesla Roadster. The prototype also features a new front bumper and redesigned side mirrors, confirming previous speculations. The most striking change is that Project Highland Model 3 no longer features fog lights, which aligns with other cost-cutting measures. Of course, Tesla could have integrated them into the headlight housing. However, foglights are the most efficient when placed closer to the ground.

Sadly, no ultrasonic sensors are fitted to this prototype, and no front camera is visible in the bumper, as claimed in previous rumors. This means that Tesla Vision will have to leverage its magic to offer park assist features, the same as on current models. Interestingly, the front bumper is covered in squashed bugs, which testifies that somebody drove this prototype fast with no camo. Based on this, we assume the photo was taken in a hangar at a Tesla testing facility, away from prying eyes. Even so, someone badly wanted to get famous and ripped the cover to take the picture.

Known as Project Highland, the facelifted Tesla Model 3 will introduce many subtle changes and production optimizations but no significant new features. The first images of the cockpit confirm that this will also be the case with the interior. Although the cockpit is mostly covered, it shows a Model S-like steering wheel with capacitive buttons and no stalks.

Tesla is working tirelessly to bring the refreshed Model 3 to market in the second half of the year. The prototypes we've seen so far have revealed many secrets, and insiders have filled in the gaps, so we know pretty much what to expect. A picture of a prototype missing the usual camouflage also showed the new front design in all its beauty. Still, there are secrets that the refreshed Model 3 and Tesla have yet to reveal.

Despite several pictures of the prototypes, we still don't know much about the changes to the dashboard. Yet, a lucky drone operator covering the Fremont factory was able to spot a Project Highland prototype with the door open, revealing the car's darkest secrets. It wasn't just a lucky shot, though, as the drone appears to have stalked the prototype for quite some time while it was undergoing testing on the Fremont test track. It pays to have a drone with a big battery, and the operator's patience was rewarded with the best glimpse inside the refreshed Model 3 cockpit we've seen.

The cabin is filled with test equipment, and the dashboard is covered almost entirely, so it's not much to soak in. Still, the steering wheel is visible and spells bad news for future Model 3 customers. The part is round and looks a lot like the ones on the Model S/X and the Tesla Semi. This means it will most likely feature capacitive buttons on it, although it's unclear if this means the horn button will remain in the center or not.

There's a notable difference, though, as the steering wheel on this prototype appears to have a bigger central part and, as such, less space for buttons. The images are unclear, but the black cover could hide the turn signal stalk if the prototype still has one. It obviously doesn't have the gear selection stalk since the driver is seen (at 03:22 in the video) using the central screen to put the car in Reverse. Hello, Smart Shift.

People who saw the images are already decrying the expected loss of stalks. The capacitive buttons are woefully impractical, especially those for the turn signals when you need to switch them while turning. Try signaling the intention to exit a roundabout with the steering wheel upside down, and you'll understand why.

Recent rumors from China indicated that the refreshed Model 3 could start test production as early as June 1 at Giga Shanghai. We know that Tesla has been revamping the production line recently, so this is entirely possible. Still, Tesla China has contacted a local news outlet and denied that mass production would start on June 1. Technically, it didn't deny the initial rumors about the test production, so make of it what you will. Also note that Tesla denied rumors in the past, only for them to prove true later.

Tesla doesn't want people to stop buying the current model if they find out the refreshed one will start sales soon. Not that newer Tesla models have anything to crave for. Most of the time, they come with fewer features instead of more. In the case of Project Highland, a leaked picture shows that the fog lights have been deleted, with possibly more lost under the hood.

The Tesla Model 3 Long Range AWD is back on the menu for European customers, although in a different form. The new model, arguably offering the best bang for the buck, is built in China with LGES battery cells. Tesla is still not offering it through the Design Studio, but people can find it in the inventory in many European countries.

Tesla sales and production data from the past two quarters suggest that the EV maker has a bigger production capacity than it can sell. Tesla throttled Giga Shanghai and its factory in Fremont to accommodate the production ramp-up at Giga Texas and Giga Berlin. Still, this hasn't solved the issue of Giga Shanghai production exceeding local demand. In a surprising and unprecedented move, Tesla started to export more of Shanghai's output to other markets, including North America.

At the end of March, Tesla started exporting the Model Y RWD to Canada, and weeks later, Model 3s with North American plates were spotted at Giga Shanghai. The Model Y RWD features an LFP battery pack, and the Model 3 would likely use the same chemistry. At about the same time, Tesla introduced an intriguing Model 3 Long Range AWD in the US. This certainly isn't built in China because it can still claim a $3,750 IRA tax credit. But its battery pack is rumored to be made with LGES cells imported from China, which explains the reduced tax credit.

A new report indicates that Tesla has already moved to export more of Giga Shanghai production. A new Model 3 variant is imported into Europe and could become a new best-seller. The Model 3 Long Range RWD is built in China with LGES cells and sells in Europe at a more affordable price than the LR AWD version. The Model 3 LR RWD was first offered in March to UK fleet customers and is now also offered to retail customers in other European markets. It cannot be configured in Tesla's Design Studio yet, and the only way to buy the new model is from the inventory. This usually happens when Tesla has a limited number of cars available.

At 46,970 euros ($51,079), the Model 3 LR RWD costs 4,020 euros ($4,370) less than the LR AWD variant in Germany. The price is 46,478 euros ($50,544) in Italy, making the Model 3 LR RWD 2,000 euros ($2,175) more affordable than the LR AWD version. The range is 620 km (385 miles) on 18-inch wheels according to the European WLTP standard, although this is somewhat optimistic. Surprisingly, it's less than the Model 3 Long Range AWD, which offers a 626-km (390-mile) range when equipped with the same wheels.

The LR RWD variant has the same top speed as the standard-range car, at 233 kph/145 mph, but 0-100 kph (0-97 mph) acceleration takes longer, at 5.9 versus 4.4 seconds. This is slightly faster than the LFP-powered Model 3 RWD (6.1 seconds).

Tesla continues what appears to be a Model 3 sell-off in North America, with generous discounts on new cars in the inventory. It also threw three months of free unlimited Supercharging to those buying a new Model 3 from inventory by June 30.

Tesla is preparing to announce the refreshed Model 3 this summer, with pre-production rumored to have already started at Giga Shanghai. Although it remains tight-lipped about the Project Highland launch and availability, there are moves in the market that suggest the EV maker is preparing the field for the refreshed model. Tesla slashed the prices of the Model 3 toward the end of May, and on June 1, it operated a massive price cut for new Model 3 EVs in the inventory.

Looking at Tesla inventory trackers, it appears that the price cuts were not working. The inventory started ballooning right about when Tesla slashed prices, which doesn't make sense. This indicates that Tesla keeps adding cars, corroborating rumors that Model 3 production will stop to allow the production lines to prepare for Project Highland production. However, there are a lot of Model 3 units in the inventory, with more than 1,000 listings in the US and Canada, and Tesla wants them sold before the refreshed model arrives.

To help move the metal, the EV maker promised three months of free unlimited Supercharging to those who buy a new Model 3 from the inventory by June 30. This is not a groundbreaking deal, but another perk to make the Model 3 even more attractive to buyers. It shows confidence as Tesla tries to balance its vehicle stocks. It doesn't want to have too many unsold units when the new model comes out, but it doesn't want to be out of cars to sell either until production resumes. Remember that the refreshed Model 3 will take a while to ramp up production, during which availability might be affected.

During his recent visit to China, Elon Musk was rumored to have seen the first Project Highland pre-production cars rolling off the manufacturing line at Giga Shanghai. Tesla will attend the Shenzhen Auto Show between 16 and 24 June after a two-year hiatus, and people believe the EV maker has a strong incentive to do it. They think Tesla will present the refreshed Model 3 to the public, although it traditionally launched new models during dedicated special events. Those who do not believe the Project Highland Model 3 will appear in Shenzhen expect a proper announcement during the Q2 earnings call in July.

As the new Model 3 gets closer to its first deliveries, we found out further details about it. A recent video revealed that Project Highland would have ventilated front seats, ambient lighting, and an upgraded sound system. This report contradicts previous claims that the new model will remove more features to reduce production costs. At least the refreshed design is a hit with Tesla fans and will likely help reinvigorate Model 3 sales.

Tesla is preparing the refreshed Model 3, rumored to start deliveries in the coming months. A new report confirms previous information that the revamped Model 3 will feature an LMFP battery pack. The improved chemistry will raise the battery capacity to 66 kWh, a 10% improvement over current LFP packs in the Model 3 RWD.

When CATL announced its M3P battery cells in July 2022, it offered little information besides the fact that it's a modified formula based on lithium-iron-phosphate (LFP) chemistry. Many confused them with LMFP cells, which add manganese to the recipe for improved energy density. Still, CATL assured us that the M3P cells are different in the way that the iron is enriched with a mix of materials that include magnesium, zinc, and aluminum.

This gives them a better performance than the LFP cells while keeping the price well below the NMC cells used in high-performance EVs. Compared to LMFP cells, the M3P cells have a longer lifecycle and lower internal resistance. This allows faster charging times and higher discharge currents, hence more powerful drive configurations.

Last year, CATL announced that the M3P cells would be supplied to Tesla"in early 2023," although it didn't happen. Instead, the new cells will land in the battery packs of the refreshed Model 3 RWD, which is expected to start deliveries in the coming months. This information has been confirmed by the Chinese media, which also says that the new battery packs offer a nice capacity boost, from 60 kWh to 66 kWh for the Model 3 RWD. This is the second battery upgrade for the base version of the Model 3, which started with a 55-kWh LFP pack. The new battery pack will also be installed in future versions of the Model Y.

The Tesla Model 3 RWD with an LFP battery pack now has an EPA range of 272 miles (440 km). With the upgraded battery, it should go as far as 300 miles on a charge (480 km). That is unless Tesla manages to squeeze more range thanks to improved efficiency in the drivetrain and better aerodynamics. The refreshed Model 3, also known by its internal name Project Highland, is reportedly slightly longer and sportier. If the reports are accurate, it will also feature a steer-by-wire system and many improvements throughout.

The revamped Tesla Model 3 is almost ready to meet the first customers, as trial production is already underway at Giga Shanghai. A new report indicates that the first deliveries are planned for October, while the pricing strategy, at least in China, is much more aggressive than before.
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Based on the rumors from China, the refreshed Tesla Model 3 is already in trial production at Giga Shanghai. Although the development was done mainly in the US, the first Project Highland units will roll off the production line at Giga Shanghai. A new report from China shows that volume production will start next month, with the first cars delivered to customers in October. The announcement confirms previous rumors about the current model's production ending on August 14.

The new report also confirms that the refreshed Model 3 RWD will roll off the production line with a new battery supplied by CATL. Although this was rumored to use the lithium-manganese-iron-phosphate (LMFP) chemistry, further details show that CATL will provide its latest M3P battery cells to Tesla. In the M3P cells, the iron is enriched with a mix of materials that include magnesium, zinc, and aluminum. This gives the new cells a higher energy density than LMFP cells and a longer lifecycle.

The new CATL battery packs will allow a 66-kWh capacity for the Model 3 RWD. This represents a 10% improvement in battery capacity compared to the current Model 3 RWD LFP battery pack, which has a 60-kWh capacity. Tesla will let CATL handle more of the battery pack production to cut costs. Instead of supplying the cells, CATL is rumored to provide the entire battery pack and possibly the ancillary equipment, from thermal management to the battery management system.

This is important in cutting costs, as Tesla seeks to offer the updated Model 3 at a lower price point. Chinese media claims Tesla aims for a 200,000-yuan ($27,800) starting price for the RWD variant. This is significantly lower than the current starting price of 232,000 yuan ($32,255) and will make competitors freak out. You can call it price war 2.0, but the new price makes the Tesla Model 3 more affordable than the BYD Han, which starts at 210,000 yuan ($29,200), and BYD Seal, selling at 213,000 yuan ($29,600).

If Tesla sells the Model 3 Highland at this price in China, it's likely to also offer price reductions in other markets. Giga Shanghai is currently exporting the Model 3 mainly to Europe and Canada, and Tesla could drastically reduce the prices in these markets. I can imagine Volkswagen executives losing sleep, as Tesla is already eating their launch even at current prices. The Model 3 is no longer the popular model it was, being surpassed by the Model Y. Still, a revamped variant with a fresh design and exciting features at a lower price might change the rules of the game completely.