Tesla has said that its highly anticipated Model 3 sedan is on track for volume production by September, Reuters reports. “According to our financial plan, no capital needs to be raised for the Model 3 but we get very close to the edge”, CEO Elon Musk told the investors in a conference call on Wednesday, suggesting that his company may ask Wall Street for some cash.
The electric carmaker plans an additional $2 billion to $2.5 billion in capital expenses before the Model 3 launch and has $3.4 billion cash on hand. “We’re considering a number of options but I think it probably makes sense to raise capital to reduce risk,” Musk said.
Many investors and suppliers have predicted Model 3 volume production would be delayed until 2018, but Tesla said it would produce over 5,000 Model 3s per week “at some point in the fourth quarter”, and 10,000 vehicles per week “at some point in 2018”.
Musk reiterated that Tesla still planned to deliver 500,000 cars in 2018 and 1 million vehicles by 2020. Tesla did not give its usual full-year delivery estimate, but said it expected to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017.
The company did not give a Model 3 target for this year and declined to update a previous disclosure made last April that 373,000 advance reservations had been taken for the car.
The public might not see the final version of the Model 3 until as late as July, when limited production begins, Musk said.
There is still no specific pricing for Tesla Model 3 in Canada, but it is expected to start at around US $35,000.