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There can be only one … new Model 3.

Tesla is reportedly working on a major update of its compact sedan under the codename "Highland."

There is word on whether the name is a reference to the "Highlander" fantasy film, but the project aims to chop the number of parts used to build the Model 3, according to Reuters.

Sources told the news outlet that one goal of the redesign is to "reduce the number of components and complexity in the interior."

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model 3 rear

The Tesla Model 3 launched in 2017. (Tesla)

Tesla has been reengineering its vehicles with fewer parts to speed up production and cut costs.

The Model Y's front and rear structures were reduced from over 70 parts each to one, for instance, through the use of the world's largest casting machines.

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"Over and over, we found parts that are not needed. They were put in there just in case or by mistake. We eliminated so many parts from a car that did nothing," Tesla CEO Elon Musk said at a recent Baron Funds conference.

Musk has also said the ultimate goal is to be able to stamp entire car bodies as single pieces like toys.

model 3 cabin

The Model 3's interior features a single display. (Tesla)

Musk, who acts as Tesla's main spokesperson, has not commented on the report and the automaker no longer operates a communications office that regularly fields questions from the media.

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The extent of the Model 3's styling changes are unknown. Tesla last year updated the Model S and Model Y with exterior designs that did not differ much from the vehicles they replaced, although their interiors were fully refreshed with new dashboards, digital displays and yoke-style steering wheels.

model 3

The Model 3 is built in Tesla's California and China factories. (Tesla)

The Model 3 has been on sale since 2017 without any major design changes and is currently built at Tesla's Fremont, California, and Shanghai, China, factories.

Tesla has also started installing its new larger, more efficient battery cells into some of its Texas-built Model Y's, which could potentially be used in the Model 3.

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Tesla's next major event is scheduled for Dec. 1, when the first Semi tractors will be delivered at its factory in Sparks, Nevada.