Trade Resources Company News Tesla Secures Regulatory Approval to Build Model 3 Electric Car

Tesla Secures Regulatory Approval to Build Model 3 Electric Car

Telsa Motors CEO Elon Musk said that the production of the Model 3 electric car would start this week and the first deliveries are expected to be done by the end of this month.

Musk tweeted the latest model from Tesla has received regulatory approval for production two weeks ahead of its schedule.

The company plans to deliver a limited number of vehicles this year, starting this month.

About 30 cars will be delivered to customers at a party to be held by the end of this month.

Elon Musk, in his tweets stated that Model 3’s production is expected to grow at an exponential scale, with about 100 cars in August, about 1500 in September and about 20,000 per month by December this year.

Tesla Motors is poised of drastically increasing production next year and plans to reach its target of producing about 500,000 vehicles.

Until now, the company has been producing high-priced luxury electric cars in small numbers and this is the first attempt by the company to produce an affordable vehicle for the masses. The Model 3 is priced at $35,000.

In order to produce batteries for the Model 3 and its Batterypack product range, the company has been in the construction of its Gigafactory in Nevada.

The company claims that the factory alone can produce enough lithium-ion batteries, when it is completed in 2017 that the entire world produced in 2013 or 35GWh of battery packs.

Tesla invested about $5bn for the construction of this factory. $1bn was contributed by Chinese tech company Tencent, which acquired 5% stake in the company.

The main aim is to bring down the per kilowatt hour (kWh) cost of lithium-ion battery packs by more than 30%.

Back in 2016, when Model 3 was showcased, the company received about 400,000 bookings.

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