News: Tesla Model 3 Production Starts July 7

Elon Musk Tweets Early Start to New Model

As was rumored, Elon Musk took time out from his Sunday evening to update the world on the production schedule for Tesla’s new Model 3. The first affordable Tesla will begin production on Friday, July 7. Musk said it had “passed all regulatory requirements” and the first would roll off the line and into customer hands by the end of the month.

The first 30 customers will receive their Model 3s at a “handover party” on July 28, Musk added. He projected production to ramp up “exponentially” to 100 in August, more than 1,500 in September and hit 20,000 in December. Based on that, it looks like Tesla hopes to build as many as 25,000 Model 3s in 2017, though historically the company only reports delivered cars in its quarterly reports so it’s not clear what the numbers will be.

However many are delivered, it looks like July through the end of the year will see a steady stream of news on the new model. Those early cars are destined for Tesla employees as a way to work out any bugs that may crop up at the start of production. Other than some token deliveries, customers aren’t expected to get Model 3s until 2018.

The authoritative website Tesla Model 3 Owners Club reports that the Model 3 will have a base price of $35,000. Options such as larger battery packs, metallic paint and more will cost extra. This car is designed to compete directly in the luxury car market dominated by the BMW 3-Series, Audi A4 and Mercedes C-Class, so expect similar pricing to those cars when equipped with similar options. The first models are expected to have smaller battery packs than the Model S’ smallest (60 kWh), delivering a range of 215 miles. Larger battery packs are expected at a later date. More details will be out soon after the first cars are delivered.

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