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Tesla hands over first Model 3 electric cars to early buyers

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

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The interior of the Tesla Model 3 sedan. Photo: Reuters
Reuters

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.

Outside Tesla’s Fremont, California factory, Musk showed off the US$35,000 base vehicle with a range of 350km on a charge that marks a departure from the company’s earlier luxury electric cars.

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.

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Hours before the event, Musk acknowledged it would be “quite a challenge” to build the car during the early days of production.

“We’re going to go through at least six months of manufacturing hell,” Musk told journalists.

We’re going to go through at least six months of manufacturing hell
Elon Musk

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

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