Like it or not, Tesla is steadily changing the electric vehicle landscape, and while reports continue to emerge stating that the upstart automobile firm is set for failure, the carmaker appears determined to meet the goals it has set with regards to the production of the Model 3, the company’s most important vehicle to date. The Tesla Model 3 is the carmaker’s first mass-market EV, in the way that it is targeting a far wider niche than the company’s other, higher-end vehicles, the Model S and the Model X.
When Tesla unveiled the Model 3 last year, CEO Elon Musk stated that the production of the highly-anticipated car is set for the middle of 2017, with deliveries starting before the end of the year. During that time, the Model 3’s production goal appeared to be a little bit far-fetched, considering that Tesla is known to miss its production goals by a wide margin. If a recent earnings report from the EV maker is any indication, however, it appears that Model 3 production is progressing as scheduled, according to a BGR report.
Sightings of the Model 3 from Tesla fans seem to indicate that the car is nearing its final testing phase as well. Over the past few months, Model 3 vehicles were spotted on the road, with Tesla fans spotting white, blue and black-colored variants of the EV. Recently, an Instagram user spotted a red Model 3 in the wild, and from what could be determined so far, the EV is practically ready for mass production.
Last February, Elon Musk stated that the final reveal of the mass-market EV would likely happen sometime in July 2017. Thus, in the months leading up to the car’s final launch, Tesla would be finalizing the Model 3’s interior and center console. In a recent shareholder letter, Tesla revealed that the development phase of the vehicle is nearly complete.
“Model 3 vehicle development is nearly complete as we approach the start of production. 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.”
Despite being a company that does not really play by the market’s traditional rules, Tesla has seen its unorthodox strategies pay off in spades. According to a Forbes report, Chamath Palihapitiya, founder of Social Capital, stated that currently, Tesla’s shares are among the most dangerous stocks to be short. The Social Capital founder also said that the consumer demand for Tesla’s EVs is unimaginable.
“Tesla is a dangerous stock to be short. When they announced the Model 3, BMW saw a 25 percent decrease in the 3 Series. There’s clearly a desire by consumers to have this company win.”
With the Model 3 seemingly set on entering production right on schedule, Tesla is set to become one of the fastest-growing automakers in the market. In fact, if Tesla continues on its current pace, the EV maker would reach Porsche’s 10-year growth in just three years. In a recent research note, Evercore ISI analyst George Galliers described Tesla’s massive growth, citing the EV maker’s top-line metrics.
“To put Tesla’s growth in context, we note it took Porsche 10 years and four product lines to go from 35,000 units to just under 100,000. Even with only a small contribution from the more affordable Model 3, Tesla is on course to achieve similar growth in only three years.”
If Tesla does meet its July goal for Model 3 production, the upstart carmaker would be able to manufacture as much as 500,000 units annually. Just a few years ago, such a goal appeared to be far-fetched. True to Tesla’s style, however, such a goal seems to be very attainable now.
[Featured Image by Ethan Miller/Getty Images]