Australia's most popular electric car, the Tesla Model 3, is in line for an update next year - report

According to sources with details of Tesla’s product development, the company is currently in the process of updating, facelifting, and cutting production costs for its popular Model 3.

According to Automotive News, four insiders say Tesla is aiming to simplify the Model 3 to reduce production costs and improve the end product.

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This is likely to mean upgrades to interior elements such as the Tesla’s control screen and display, though specific details aren’t forthcoming.

Insiders say the interior updates will follow in the footsteps of the relatively recent Model S updates which added a steering yoke in place of the traditional wheel, as well as removing physical buttons to increase focus on the central multimedia and vehicle control screen.

In addition, upgrades to the physical elements of the battery and drivetrain and its exterior bodywork could be up for inclusion, which industry experts expect based on consumer behaviour.

Ed Kim, vice-president of auto industry analysis for AutoPacific, said despite the Model 3’s numerous and significant software updates, remaining visually similar since its 2017 global introduction means it’s due for a physical refresh.

“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.

The insiders told Automotive News that the updated Model 3s will be built both at Tesla’s factory headquarters in California as well as the Shanghai Gigafactory, with the latter starting new version production in Q3 2023.