Tesla is preparing to roll out significant updates to its Model 3 sedan in Australia and Europe, mirroring recent enhancements made to the popular Model Y SUV. The changes, first revealed by a user on X (formerly Twitter), focus on interior refinements and improved headlight technology.
Enhanced Interior Experience
The most noticeable upgrade is a new 16.0-inch touchscreen, replacing the current 15.4-inch display. This boosts the screen area from 106.59 to 109.39 square inches, providing a more immersive user experience. Tesla is also moving towards a more premium cabin feel by replacing the light grey headliner with a black version.
Improved Visibility with Matrix LED Headlights
The Model 3 will also benefit from improved matrix LED headlights featuring a two-stage reflective dip function. This allows for greater control over light output, enhancing visibility by illuminating more of the road and surroundings. Notably, these improvements are reportedly software-based, meaning some existing owners may be able to receive them through an over-the-air (OTA) update.
Software & New Features
Tesla has recently begun introducing its Grok chatbot to Australian vehicles, though it currently supports navigation commands but not media or climate controls. The planned integration of Apple CarPlay has been delayed due to compatibility issues with Tesla’s Full Self-Driving (FSD) system.
The FSD function was launched in Australia in September 2025, moving from a one-time purchase to a subscription model.
Market Dominance and Competition
The Model 3 and Model Y continue to dominate Tesla’s sales, accounting for 97% of global deliveries in 2025. The Model Y was the world’s best-selling EV last year and led sales in Australia, though competition is rising with models like the BYD Sealion 7 and Kia EV5 gaining traction.
Tesla’s ongoing improvements to the Model 3 demonstrate a commitment to maintaining its competitive edge in the rapidly evolving EV market. The upgrades focus on enhancing user experience, safety, and software integration, ensuring the vehicle remains a strong contender against emerging rivals.
