Money will reduce financial risk of Model 3 production; first deliveries of the mass-market electric car are expected in early 2018

Tesla has secured a $1 billion (around £800 million) cash injection ahead of production of the Tesla Model 3, which will start in July.

Tesla CEO Elon Musk had previously said that while his company had enough capital to meet the demands for the Model 3, it would take it "very close to the edge".

The manufacturer has raised capital to help production and ease the financial risk associated with the production run, leading to a rise in its share price which was also helped by reports of its future model plans, including the Model Y compact SUV, according to New York financiers.

Tesla Model X road test

It had been thought that production of the mass-market electric car could be delayed until 2018, but Musk confirmed to investors that it would produce more than 5000 Model 3s per week by the end of this year and 10,000 units per week by some point next year.

Musk indicated the electric saloon, which has an entry-level price of $35,000 (about £28,000), may not be unveiled until this July, when limited production will begin. Full-scale production is slated to start in September.

Tesla said it aimed to deliver a combined total of 47,000 to 50,000 Model S and Model Xs in the first half of this year, but did not give a figure for Model 3 target sales.

It did, however, reaffirm its pledge to deliver 500,000 vehicles in 2018 and one million in 2020, when its £3.8 billion Gigafactory is expected to reach full capacity – a sharp rise from the 80,000 delivered in 2016.

Tesla also hasn't provided an update on the number of reservations taken for the Model 3, which is believed have sold out for the first year; advance reservations totaled 373,000.

Tesla's gigafactory in numbers

Meanwhile, Tesla's chief financial officer, Jason Wheeler, will leave the company in April to take a job in the public sector after a year with Tesla. His predecessor, Deepak Ahuja, will return to the role. Ahuja joined Tesla in 2010 after 15 years with Ford.

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Comments
9

24 February 2017
By the time Tesla starts producing a million cars a year - projected 2020 - it would have moved the transport world away from the fossil fuels by quite a bit.

24 February 2017
The Model 3 is to important to get wrong (like the X was in my opinion). If all goes to plan and they won't be able to keep up with demand.

 

Hydrogen cars just went POP

25 February 2017
There are plenty of great hobby cars, sports cars and impractical but cool coupes on the market currently. But most everyday cars seem to fall into two uninspiring camps. Either chugging diesels with all the appeal of a garden rotorvator, or tiny turbo petrols, the sole purpose of which is to game a discredited emissions testing procedure. Either way, the malaise is suffocating. (Literally in the case of dirty diesels.) But thankfully, some manufacturers aspire to more, and this is why the Model 3 is the most interesting everyday car (soon) to become available. Hopefully, it will clean up.

16 March 2017
I feel sorry for many Tesla owners after reading some one the comments on the owner forums. Radio station randomly changing channels. People who have had an accident but can't get their Model S repaired because there have been no parts for over six weeks, another owner was without their Model S for five months after an accident. Battery degradation is still an issues with Model S cars. One owner said his had 30k miles on the clock and with a full charge he was only getting a range of 181 miles. Another Model S said their car had covered 43k and only achieves a range of 178 miles. I've read of two cases of where the steering wheel has locked up when driving along. One was a new Model S P100D and one on a Model S 75 courtesy car. One owner has been plagued by issues including the autopilot driving them off the road and summon feature not working. One Model S owner has had their steering wheel realigned twice, but its still up to 10 degrees out. Another owner found their Model S in autopilot gets so close to the curb that they have to retake control. Others are complaining about excessive noise at motorway speeds. It all sounds rather time consuming when things go wrong and expensive when the warranty runs out. My next car will be a BMW 530d.

17 March 2017
[quote=SmokingCoal]I feel sorry for many Tesla owners after reading some one the comments on the owner forums. .... Others are complaining about excessive noise at motorway speeds. It all sounds rather time consuming when things go wrong and expensive when the warranty runs out. My next car will be a BMW 530d.[/quote] You won't want to read the Auto Express article about the 5 Series Reliability gained from owners:- "Its problems are a lack of practicality, poor reliability, and ride quality that’s average at best" the story finished with "A huge drop in the 2015 Driver Power ". p.s. guess what car was at number 1 spot of the Driver Power survey-----Ans. A Telsa. Still want that 5 series?

 

Hydrogen cars just went POP

16 March 2017
Exactly the reason why I wouldn't consider a Model 3. Tesla are making rookie build and engineering mistakes with their cars the rest of the auto industry quashed decades ago. In features like summon and Autopilot they are over promoting technologies that arent ready for prime time, that other manufacturers deliberately limit. I suppose it would be like buying a car with a stonking drivetrain but mediocre / average everything else. Ill be waiting for my electric car fix from a traditional manufacturer who can get the whole package right.

17 March 2017
Of course I'll be sitting in that mainstream manufacturers electric car because of Tesla, so hats off to them for that. Its like the mind that had the vision / could concieve of bringing an electric car to the masses before anyone else also comes with unwanted baggage. Retracting door handles? Falcon wing doors? to name but two things that add complexity for little gain.

17 March 2017
I agree that Tesla should concentrate on the electric tech bit and farm out the rest of car production to an established manufacturer, preferably Toyota/Lexus. Oh, and commission an inspired designer to do the bodywork.

17 March 2017
@xxxx I wasn't trawling the internet. I was on Tesla's own forum for owners. If you want a car that will drive you off the road, have the steering lock up or take more than five months to fix then I wish you luck buying an electric Elon-machine.

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