The Tesla Model 3 is arguably due for an upgrade, and it seems Tesla has been working on it for some time now. The US EV maker doesn't typically share info about upcoming model refreshes or projects that are underway, but it's reportedly in the midst of preparing an updated Model 3 under the codename "Project Highland."

The Model 3 was the best-selling EV in the US for a time and one of the top-selling electric cars in the world. When the more family-friendly Model Y came along, Tesla CEO Elon Musk said it would eventually be the brand's best-selling car and a top seller across the globe. He was right, and it's arguably time to get folks just as interested in the Model 3 yet again.

While Tesla hasn't made any official announcements, various Model 3 vehicles have been spotted out testing, and they appear to be associated with a "redesign" of sorts. It seems Tesla is working to strip down the electric sedan, reduce costs, simplify its interior, and upgrade cabin technology. Some people suggest that the updated Model 3 may also come with a lower price tag, though it's hard to put a finger on pricing right now with Tesla's many recent changes.

Tesla and Musk did reveal during the recent Q4 2022 earnings conference call that there are new products in the pipeline, though they remained quiet about details. The Semi has arrived, the Cybertruck is coming soon, and it seems the Roadster will arrive sooner rather than later, so there aren't a whole lot of other possibilities at this point. Tesla could be referring to a smaller, cheaper electric compact car or hatchback, as well as Project Highland.

According to a recent article published by Teslarati, Tesla is continuing to work on installing new assembly lines for the upcoming Model 3 as part of Project Highland. Filings show that the automaker has been working on the project for nearly two years already, and is now moving beyond the stage of demolition related to the current Model 3 production lines.

The publication writes that Tesla started tearing down existing Model 3 "Hang On Lines" late last year, and now it has completed the demolition. Public filings reveal that now Tesla has moved on to installing the revamped manufacturing lines. Based on details in the filings, the company recently applied for revisions to some areas of the line.

Tesla has an investor day event planned for March 1, 2023, which Musk announced not long ago. During the recent earnings call, the company said that it plans to discuss its upcoming, next-generation platform during the event. It's not yet clear if the future platform also applies to the Project Highland Model 3, so perhaps we'll get more information related to the revamped electric sedan at the event as well.

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