Elon Musk-led Tesla is on track to unveil its mass-market Model 3 electric car in March 2016. The electric vehicle maker said in a shareholder letter that even though the company will unveil the vehicle in March, Model 3 won’t hit the roads until 2017. The car boasts a range of more than 200 miles, and would target middle-class buyers who want the Tesla experience, but can’t afford to pay $70,000 for Model S.
Model 3 mass production to start after Gigafactory is up and running
The Model 3 is expected to be priced at $35,000. The vehicle is unlikely to enter mass production until Tesla’s Gigafactory in Nevada begins production. Elon Musk told investors that construction of the Gigafactory was ahead of schedule, and would be up and running by the end of 2016. Earlier this week, the Palo Alto, California company reported a net loss of $230 million on Q3 revenues of $937 million.
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During the September quarter, the EV maker produced 13,091 vehicles despite a week-long shutdown, and delivered a record 11,603 cars. Global orders for Model S also skyrocketed 50% from last year, thanks to continued expansion in China. Tesla also launched its much-delayed Model X SUV crossover. Elon Musk reiterated that the company would deliver 50,000 to 52,000 units in 2015. The company has to deliver 17,000 to 19,000 cars in the fourth quarter to meet its full-year target.
Tesla may go for small acquisitions
Elon Musk said customers were enthusiastically embracing new features like “falcon wing doors” and a panoramic windshield in Model X. However, constrained supply of components was limiting Model X deliveries in the current quarter. The company has already delivered the SUV to a few early buyers, but most customers will get their Model X in the second half of 2016.
For FY2016, Tesla expects to deliver between 1,600 and 1,800 units per week, or about 90,000 vehicles over 12 months. Elon Musk told investors that he wouldn’t mind acquiring smaller firms if they could help boost the production of upcoming Model 3. So far, Tesla has made only one acquisition, Riviera Tool for $10 million.