Tesla is taking small steps forward to make sure it meets the July production deadline for its ambitious Tesla Model 3 sedans.
In a bid to stir up fans and investors alike, Tesla has recently announced that it plans to start test-producing Model 3 sedans. On Feb. 8, Tesla stated that it will shut down its California-based assembly plant for a week in February in order to start pilot testing Model 3 sedans.
In addition, the company also revealed that the "brief" break is "planned" as it will give the automobile maker required time to add capacity and level up other general maintenance for the production of the Model 3.
"This will allow Tesla to begin Model 3 production later this year as planned and enable us to start the ramp towards 500,000 vehicles annually in 2018," said a Tesla spokesman in context of the planned break.
However, industry insiders revealed to Reuters that Tesla intends to start test producing Model 3 from Feb. 20 itself. An insider familiar with Tesla's current ongoing decisions stated that rolling out pre-production models would "stoke" the fan base of Tesla and also the Wall Street.
Tesla Model 3 Production
In 2016, Tesla stated that it aims to speed up the production of its best-selling model Model 3 earlier than planned. The company stated that it intended to produce at least 500,000 cars from 2018 itself rather than waiting till 2020.
The plan was taken after the phenomenal success of Model 3, which registered 325,000 advanced reservations in its first week of sales. To achieve the target of producing 500,000 cars by 2018, the company's CEO Elon Musk has asked dealers to supply parts by mid-2017 in a bid to meet the deadline.
"As a rough guess, I would say that we aim to produce 100 to 200,000 Model 3's in the second half of next year," said Musk when quizzed in 2016 on the number of models the company looked to manufacture.
The Model 3 has been priced at roughly $35,000 excluding the government incentives and is till date the lowest priced Tesla car, which has become an instant favourite with people. The upcoming electric car could change the game for Tesla, which hasn't had a profitable sales year since going public in 2010.
If Musk succeeds in achieving the target of 500,000 cars by 2018 then the annual production of Tesla would rise by four to five times compared to the figures of 2016. Model 3's success will take Tesla out of the niche luxury car category and will expand the market for the automobile maker.