Its launch will follow a bumper year for electric vehicles in Australia that saw more than 130,000 on roads and Tesla record more than 11,500 Model 3 sales in the first six months of 2023.

Rumours about a potential upgrade for the US car maker's cheapest vehicle, dubbed Project Highland, began in March but intensified in June when a prototype was spotted under wraps in California.

Outside, the new Tesla Model 3 will feature a refined body shape designed to reduce drag and increase its range by more than 20km per charge, redesigned headlights with integrated fog lights, and new shades of red and grey in Australia and New Zealand.

Inside the vehicle, the Model 3 will add a streamlined steering wheel, ambient lighting, ventilated front seats, and acoustic glass to reduce noise.

Passengers in the rear of the vehicle will also be able to access climate controls for the first time following the addition of an eight-inch touchscreen between the front seats.

The upgraded Model 3 will feature a new battery mount and metal body structure for safety, and offer different wheel configurations.

Tesla's newest vehicle will cost more than its predecessor though, with the price of the cheapest configuration rising $4500 to $61,900 and the long-range version costing an additional $500 at $71,900.

The popularity of electric cars more than doubled in Australia over the year to June, according to the Electric Vehicle Council, with sales up by 121 per cent.

US automaker Tesla has remained the most popular electric vehicle brand in the country, though its Model 3 has been overtaken by its larger Model Y with sales of more than 14,000 cars in the first six months of the year.

The Model Y was also the fourth highest selling new car in Australia during July, according to the Federal Chamber of Automotive Industries. 

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