Thursday February 09, 2017

Tesla Will Start Preliminary Model 3 Production Later This Month

The Model 3 is finally happeningآ—and it better, with 400,000 preorders already on the books. Tesla is shutting down its California assembly plant and preparing it for the production of the company’s most affordable car yet. While the Model 3 is expected to release at the end of this year, it could very well be delayed due to ongoing changes to its design, which Musk claimed was completed last summer.

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The sources did not know how many of the highly-anticipated vehicles Tesla aimed to build in February, but it would likely be a small number to test the assembly system and the quality of vehicle parts. "What better way to stoke the fan base and Wall Street than to wheel out pre-production models" ahead of the earnings announcement, said one person familiar with Tesla's plans who spoke on condition of anonymity. The Tesla spokesman declined to comment on the company's production schedule. Musk had told investors last year that the company could miss the July 2017 startup target if suppliers do not meet deadlines. Tesla has a lot riding on the Model 3, which is priced at roughly $35,000 before government incentives. If successful, the sedan could raise Tesla beyond a niche luxury player in the automotive sector.