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Tesla Model 3 still on track as automaker burns through cash Model 3 to be a make-or-break moment for rapidly growing automaker


Tesla is prepping for production of its long-anticipated Model 3 later this summer, but the latest financial news renewed doubts about the company's transition from a boutique automaker to a larger one.
Tesla's net loss amounted to $330 million during the first quarter of 2017 as the company burned through cash in a rush to set up production of the Model 3. At the same time, the electric automaker reported record deliveries of the Model S and the Model X obd2 scanner generating $2.7 billion. The better-than-expected revenue buoyed its stock value past two Detroit giants immediately following the release of its financial results.
"Model 3 vehicle development is nearly complete as we approach the start of production," Tesla said in a statement. "Release Candidate vehicles, built using production-intent tooling and processes, are being tested to assess fit and finish, to support vehicle software development and to ensure a smooth and predictable homologation process. Road testing is also underway to refine driving dynamics and ensure vehicle durability."
After production starts in July 2017, Tesla hopes to ramp up production to 5,000 cars per week later this year, and reach a 10,000-unit-per-week production output sometime in 2018. Even so, it will take Tesla a significant amount of time to work through the backlog of orders that it received when it started accepting deposits for the electric sedan in 2016. New customers will likely have to wait in line for months, while used Model 3s may become a hot commodity among private speculators.

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