Tesla has released its financial results for the final quarter of 2016 while also revealing that the entry-level Model 3 remains on track.
In a letter to shareholders, Tesla chief executive Elon Musk said that production of the Model 3 should commence in July. The letter also revealed that the automaker will be building over 5,000 Model 3s a week at some stage during the fourth quarter of 2017. During 2018, production will ramp up to 10,000 units a week.
Speaking of the production plans for the Model 3, Musk said “Model 3 production will be simpler than the Model S or Model X. For example, the Model 3 only has one screen, where S and X have two.”
Ben Kallo, an analyst at Robert W. Baird & Co added to this by saying “It is all about the Model 3, and Tesla says the suppliers are on time, which historically has been a thorn in Tesla’s side.”
When the Model 3 hits the market, it will start at approximately $35,000 and have a range of around 215 miles.
As for its financial situation, the Silicon Valley-based company reported a $121 million loss in the fourth quarter of 2016. While far from a profit, that figure is two thirds less than it was in the fourth quarter of 2015.
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