The project is reportedly codenamed “Highland.” For a few years now, Tesla has been integrating its large casting technology into Model Y with single large casting parts replacing dozens of parts in the electric SUV. Advertisement - scroll for more content This new technology has enabled Tesla to greatly improve manufacturing efficiency with the Model Y compared to Model 3. CEO Elon Musk said that Tesla will bring the same technology to Model 3 eventually, but he couldn’t exactly say when. The problem is that such an update to the Model 3 would temporarily slow down production, and Tesla couldn’t afford that while it was still ramping up Model Y production. However, Model Y production is now starting to exceed Model 3 production, and it could be good timing for Tesla to update the Model 3 using the technology. Now a new Model 3 prototype has been spotted in Santa Cruz, California, by Twitter user omg_Tesla/Rivian: The Model 3 is equipped with manufacturer plates, which would indicate that it is owned by Tesla, and combined with the heavy camouflage in the front and back of the vehicle, it likely points to the automaker testing an updated version of the electric sedan. However, not much can be discerned from the pictures thanks to the camouflage, which even covers large parts of the headlights. Top comment by ML194152