Report: A New Tesla Model 3 Is Coming as Early as Next Year

• A new Tesla Model 3 might be on its way.
• The project is apparently codenamed "Highland."
• The new car would feature fresh looks and new underpinnings.

Tesla fans, rejoice: A new Model 3 might be headed your way. According to a report from Reuters, the Model 3 is in for a big shakeup that could come as early as next year. According to four unnamed sources, the project is reportedly named "Highland," and development is underway to boost the Model 3's appeal and help cut costs.

The Model 3 has been in production since 2017 and has gone largely unchallenged in its five years on the market. Only now are rivals starting to develop their own compact EV sedans. BMW released the i4 electric sedan earlier this year, and the Hyundai Ioniq 6 is on its way. The Model 3 has gone largely unchanged since its release, though, and the report from Reuters says that the Model 3 revamp is focused on improving features Tesla customers value, including the display.

But the changes to the Model 3 will be more than skin-deep, and the report also says that Tesla will be looking to cut costs as well. The company is said to be looking at ways of simplifying the interior and elements of the car's production to make the Model 3 more cost-effective. The Model 3 is Tesla's most popular car, and it's no surprise that the automaker will be looking for ways to save money and increase margins on such a high-volume vehicle.

The unnamed sources also tell Reuters that production of the new Model 3 will be built in Tesla's factories in Shanghai, China, and Fremont, California. They also said that the Gigafactory in Shanghai will be remodeled to support the new car, and that production could start as early as the end of next year.

Edmunds says

It's probably time for the Model 3 to get a big update, but we remain skeptical of Tesla's timeline given the company's track record and its well-documented difficulty with hitting its own deadlines.