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John Mahoney24 Feb 2017
NEWS

Tesla Model 3 production begins July

Deliveries of 'affordable' mainstream pure-electric sedan imminent, but EV-maker admits it needs more investment

Tesla has announced it will begin building its Model 3 in July, but admits it needs new investment before it can begin selling its small pure-electric BMW 3 Series rival.

Heading off rumours that the US car-maker's Model 3 development had been hit with big delays, CEO Elon Musk told investors at a recent conference that Tesla was still on track to begin building more than 5000 Model 3s per week by September this year and would manufacture over 10,000 cars per week in 2018.

Despite being on track, Musk told his financial backers he still may ask Wall Street for more cash to bankroll the introduction of its most important vehicle.

"According to our financial plan, no capital needs to be raised for the Model 3, but we get very close to the edge", the Tesla owner announced.

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It's now reported that Tesla needs to raise an additioaln $US2-2.5 billion ($A2.6-3.2b) to help the US car-maker bring the Model 3 to market.

"We're considering a number of options but I think it probably makes sense to raise capital to reduce risk," Musk said.

Musk restated his claim that Tesla still planned to deliver 500,000 cars in 2018 and a million vehicles by 2020.

The US car-maker has some way to go. Its sales expectations for the first half of 2017 are modest. It plans to sell just around 50,000 Model S and Model X models combined.

Musk did not announce whether or not the previously disclosed 373,000 advanced orders for the Model 3 were included in its half-million sales estimate.

When eventually launched, the mid-size liftback will sell from $35,000 in the USA and around $65,000 Down Under.

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Tesla claims the base model variant of the Model 3 will boast an electric driving range of 350km and 0-100km/h in less than six seconds.

Later on, faster and longer range versions will arrive.

Like its Model S and Model X siblings, the smallest model in the Tesla line-up will come with the US car-maker’s AutoPilot self-driving technology, Supercharger fast-recharge capability, a glass roof that extends from bonnet to boot lid, five seats and a landscape touch-screen infotainment system to replace the oddball portrait unit in the Model S.

Once launched, Tesla plans to introduce a Model Y SUV, pure-electric delivery van, large people-mover and even ute in quick succession.

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