Two weeks ahead of its production schedule, all looks well for Tesla. The success of the company depends on the Model 3.
On Monday, with Tesla Inc announcing that it is set to deliver its mass market Model 3 sedan to its first 30 customers on July 28, the company’s shares shot up by 3% in premarket trading.
Late on Sunday, Tesla’s Chief Executive Elon Musk had tweeted that the Model 3 had passed all regulatory hurdles and was ahead of its production schedule by 2 weeks.
Tesla’s announcement has to a great extend allayed worries on its ability to meet lofty production targets. Its earlier models, including, Model X and Model S were plagued by initial quality issues and delays.
“Production grows exponentially, so Aug should be 100 cars and Sept above 1500,” tweeted Musk.
Palo Alta, California-based Tesla aims at ramping up Model 3 productions to reach a target of 500,000 cars per year in 2018.
Musk also tweeted saying, expecting to “to complete SN1 on Friday (July 7).”
As per a source familiar with the matter at hand, the term SN1 refers to serial number 1 of the first car off the assembly line for sale.
With starting prices from a modest $35,000, the Model 3 is an affordable car from the luxury carmaker. The model S price tag starts at $69,500 in the United States.
Those who had already ordered the Model 3 will start receiving deliveries as Tesla is ramping up productions. As per the company’s website, deliveries for new reservations will commence from mid-2018 if not later.
Tesla’s future rides on the success of Model 3, since the more economically priced car is seen as helping turn the flow of cash from a loss-making unit into a profitable one.
So far this year, Tesla’s shares have risen by more than 70% this year and as of Friday’s close, they stood at $361.61.
Tesla has overtaken Ford Motor Co and General Motors Co in market capitalization.