{"id":37524,"date":"2017-07-31T06:06:54","date_gmt":"2017-07-31T06:06:54","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=37524"},"modified":"2017-07-31T06:06:54","modified_gmt":"2017-07-31T06:06:54","slug":"tesla-musk-hands-over-first-model-3-electric-cars-to-early-buyers-2","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/tesla-musk-hands-over-first-model-3-electric-cars-to-early-buyers-2.html","title":{"rendered":"Tesla Musk hands over first Model 3 electric cars to early buyers"},"content":{"rendered":"

Tesla Musk hands over first Model 3 electric cars to early buyers<\/span><\/strong><\/span><\/h2>\n

Tesla Chief Executive Officer Elon Musk said on Friday the Model 3 had over half a million advance reservations as he handed over the first 30 to employee buyers, setting the stage for the biggest test yet of the company’s strategy to become a profitable, mass market electric car maker.<\/span><\/p>\n

Outside Tesla’s Fremont, California factory, Musk showed off the $35,000 base vehicle with a range of 220 miles (350 km) on a charge that marks a departure from the company’s earlier luxury electric cars.<\/span><\/p>\n

Musk took to the stage driving a red Model 3, and said Tesla has produced 50 of the vehicles so far, including 20 for testing purposes.<\/span><\/p>\n

Hours before the event, Musk acknowledged it would be “quite a challenge” to build the car during the early days of production.<\/span><\/p>\n

“We’re going to go through at least six months of manufacturing hell,” Musk told journalists.<\/span><\/p>\n

The over half a million reservations are up from about 373,000 disclosed in April 2016. Customers pay $1,000 refundable deposits for the car, which is eligible for tax credits.<\/span><\/p>\n

Any new buyers would likely not receive their car until the end of 2018, Musk said.<\/span><\/p>\n

A longer-range version of the car is priced at $44,000 and will drive 310 miles (500 km) on a single charge. The cars feature a streamlined dashboard devoid of buttons or knobs, with a 15-inch touchstream display to the right of the driver.<\/span><\/p>\n

Tesla faces major hurdles living up to the Model 3 hype. The 500,000 vehicles Tesla vows to produce next year are nearly six times its 2016 production.<\/span><\/p>\n

Were Tesla to produce and sell 500,000 cars per year, the company would likely outsell the BMW, Mercedes, or Lexus brands in the United States.<\/span><\/p>\n

Production delays and quality issues marred the launches of Tesla’s Model S and Model X vehicles, and the company blamed production problems for a shortfall during the second quarter of this year.<\/span><\/p>\n

Musk has said a simpler Model 3 design will greatly reduce potential assembly-line problems.<\/span><\/p>\n

Tesla has burned through over $2 billion in cash so far this year ahead of the launch.<\/span><\/p>\n

A troubled Model 3 launch could heighten the risks for the company, while a steady delivery of Model 3s could generate a stream of cash that would allow Tesla to avoid going again to the capital markets to fund its operations.<\/span><\/p>\n

Tesla’s share price has surged 54 percent since January in anticipation of the Model 3 launch, and Tesla’s pricey valuation now exceeds that of traditional rivals like General Motors Co and Ford Motor Co.<\/span><\/p>\n

Until now, Tesla has operated as a niche producer of luxury electric vehicles, with a charismatic, showman CEO who regularly interacts with fans on his Twitter account.<\/span><\/p>\n

Now loss-making Tesla is trying to move into a different league, building vehicles in high volume for customers able to pay only a few thousand dollars more than the average price of a conventional car or truck sold in the United States.<\/span><\/p>\n

The Model 3 is part of Musk’s broader plan to build a clean energy and transportation company that offers electric semi-trailer trucks, rooftop solar energy systems and large-scale battery storage systems.<\/span><\/p>\n

source:-https:\/\/www.reuters.com\/article\/us-tesla-model-idUSKBN1AE04G<\/span><\/p>\n

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