A Tesla Model 3 refresh prototype was spotted ahead of the launch, which could be imminent as the automaker appears to be liquidating existing Model 3 vehicles.

Late last year, we started hearing rumors that Tesla was working on a Model 3 refresh that would come during the second half of 2023. The project is reportedly codenamed “Highland.”

In December, a Model 3 prototype with heavy camouflage was spotted being tested in California. Another prototype was spotted shortly after as Tesla is expected to be closer to releasing the vehicle.

With the heavy camouflage on the front and back of those prototypes, it has been hard to identify any specific change to the Model 3. But in April, the first picture of the new Model 3 without camouflage leaked, giving us our first proper look at the upcoming refresh.

Despite rumors that the launch would be imminent, we haven’t seen a refreshed Model 3 prototype in a while.

Now, it’s been spotted again being tested on public roads in California:

The vehicle again has camouflage in the front and back – confirming that those are the outer parts that differ from the current version. The camouflage might specifically be trying to hide the taillights and headlights, which are clearly different in this refreshed Model 3.

It also features the Hardware 4.0 cameras seen in all of Tesla’s new vehicles other than the Model 3:

Last week, we reported that Tesla appears to be liquidating Model 3 vehicles ahead of the refresh launch.

The reason it looks like Tesla is liquidating Model 3 vehicles is because the discounts are for “new inventory vehicles” rather than new custom orders.

It’s possible that buyers ordering on Tesla’s website could get the new version of the vehicle while people buying the cheaper new inventory vehicles are getting the last few current generation Model 3 vehicles.