Tesla Model 3 production to begin in July

Tesla Model 3 production to begin in July
Tesla Model 3 production to begin in July

Deliveries expected to start early next year

Rumours that the start of production of Tesla’s mass-market electric car Model 3 might be delayed until 2018 have been quoshed by CEO Elon Musk.

In a call to investors Musk confirmed July this year as the build commencement date, with an initial weekly production of 5000 Model 3s ramping up to full production in September and a 2018 output of 10,000 cars a week.

An entry-level price of $35,000 (around £28,000) has been quoted for the Model 3, for which a total of 373,000 advance reservations have been made. It’s believed that the first-year production is fully spoken for.

Musk did confirm that, although “no capital needs to be raised for the Model 3” the company was seeking to raise additional capital to reduce investor exposure. “We’re considering a number of options but I think it probably makes sense to raise capital to reduce risk,” he said. Extra capital would also provide more cash for the Model Y compact SUV that is planned.

Although no target figures for Model 3 sales have been given, Tesla’s stated aim is to deliver a combined total of 47,000 to 50,000 Model S and Model Xs in the first half of 2017, a total of 500,000 vehicles in 2018, and a total of one million in 2020, when its £3.8 billion gigafactory in Nevada is expected to come fully on stream. For comparison, 80,000 Teslas were delivered in 2016.

Tesla also has a plan to add cargo vans, minibuses and pick-ups to its range.

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