Elon Musk: The First Model 3 To Exit The Factory This Week
Tesla is running ahead of schedule and is expected to launch the Model 3 this week. Tesla Model 3 is scheduled to be the first electric car availed on the market in large numbers for customers to purchase. This news was revealed by Elon Musk, the chief executive of Tesla Motors on Twitter. Musk wrote that the Model 3 had successfully passed all the production regulatory requirements and was ahead of the company’s schedule by two weeks. He added that by Friday the first car would be complete. He also announced about a handover party on the 28th for the first 30 customer Tesla Model 3’s.
The Model 3 Exponential Production Growth And Price
According to Musk, Model 3’s production will grow exponentially, therefore, by August the company expects to have produced around 100 cars and by the end of September production should be above 1,500. Musk is confident that by December, the company will be in a position to produce about 20,000 Model 3 vehicles in a month.
The Model 3 is a mid-sized car meant for the family, and it will mark Tesla’s mass-market entry. According to reports, the Model 3 will cost from $35,000, which is nearly half less than the cost of Model S, which is priced at $79,760. Since April 2016, the new electric car had been presented to customers for pre-orders. The company had placed a deposit of $1,000 for all pre-orders, but the money was refundable. Within the first weekend of the deal, the pre-orders placed by customers were over a quarter of a million.
As per the name, the Model 3 is the current Tesla range’s third model. Musk is hopeful that the production of this model will be simpler than that of the Model X, Tesla’s second car. The Model X was availed onto the market for customers to purchase approximately 18 months later than anticipated. The Model X, a crossover SUV, was complicated by its excessive customization options not forgetting the front seat custom built chairs and unique gull-wing doors.
Contrary, the Model 3 will be personalized by color and wheel type only. During a shareholder meeting held in June, Musk disclosed that the company had kept Model 3’s initial configurations very simple. He admitted that the Model X had too much complexity from the beginning and it wasn’t a wise move.
Expected Stumbling Blocks
Since the Model 3 is the first vehicle, Tesla will produce in high volumes stumbling blocks are expected elsewhere. The company produced a total of 84,000 cars in 2015 compared to General Motors, one of its greatest rivals which produced over 10million cars. Moreover, once the Model 3 is on the road, Tesla’s support burden is likely to explode. Before the end of this year, the company has already dedicated to increasing its number of service centers and stores by 30 percent. Moreover, it is committed to building a new mobile service trucks fleet.
Historically, Tesla was not always in a position to deliver on time most of its ambitious promises. Therefore, the early release of the Model 3 is good news for the company. The Model 3 was expected to start production in July 2017, and that’s what will happen. The company began taking Model 3’s reservations back in 2016, and within days it had reached several hundred thousand pre-orders. Its $35,000 price tag before tax is reasonable considering the high-quality features it comes with. For instance, it has similar autopilot hardware available on Model X and Model S cars, which are more expensive. However, Musk has cleared the air that the Model 3 is below both the Model X and Model S in Tesla’s hierarchy of car lineup.
This is a great milestone for Tesla. The Model 3 is presently the most affordable luxury car and is expected to make much larger sale volumes than Tesla’s other luxury models. The launch of the Model 3 will also mark Tesla’s transition to a new line of production, which according to Musk it is more automated compared to Model S’s production line.
On Friday this week, the first Model 3 car is expected to be complete. Elon Musk shared this news on Twitter and explained that the new Model 3 had passed the necessary production regulatory requirements. Since the April of 2016, pre-orders for the Model 3 have been ongoing. The company had announced a refundable $1,000 deposit, and by the first weekend, it reported pre-orders amounting to over a quarter million. Unlike the Model X, which was delivered over 18 months later than scheduled, the Model 3 is right on schedule. Additionally, it doesn’t come with the plethora of personalization options that were witnessed with the Model X. The company decided to keep its initial configurations simple with the only customization being color and wheel type. This shows that Tesla has been very keen not to make the same mistakes it did with the Model X. By December, the company expects to be producing over 20,000 Model 3 vehicles every month.