Elon Musks Confirms Tesla's Decline, Says 'Model 3' Will Still Be Out

Tesla has announced Wednesday that it has managed to build and deliver fewer vehicles in the last three months of 2016 than in the previous quarter, while also posting a $121.3 million loss. At the same time, however, the most popular electric-car maker is reassuring its investors that the long-awaited rollout of its next car, the $35,000 Model 3, remains still and on track.

Tesla Remains Positive Amidst Loss

Limited production of the Model 3 should begin in July and would eventually reach 5,000 cars per week by the year's end, according to a letter that Tesla sent to its shareholders. "I think it will be a very compelling and amazing car, but it possesses a simpler design, and we certainly have understood manufacturing better than we did in the past," CEO Elon Musk told the media that was present on a recent conference call Wednesday.

Model S Will Still Push Through

According to SF Gate, the car, as Musk noted, lacks some of the features that would prove problematic on the company's earlier models, such as the falcon-wing doors on the Model X SUV. It is going to feature only regular door handles instead of the ones used on both the Model X and the Model S sedan, which are the ones that lie flat against the door until needed.

Tesla's Other Branches Doing Well

In other reports, Tesla has also reported that its integration of Musk's solar leasing company, SolarCity, is well under way. Tesla's acquisition of SolarCity officially closed just six weeks before the end of the 4th quarter.

While Tesla is still in the event of building out its massive battery Gigafactory near Reno, Nevada, the company said that it also plans to pick other locations this year for two or even three more Gigafactories.

Tesla Will Depend Heavily On Succes Of Model 3

According to Seeking Alpha, Tesla's future, not to mention its sky-high stock price, pretty much depends on the Model 3, the company's first ever car that is designed mainly for middle-class drivers. Since the start of the year, Tesla's stock has surged up to 27 percent to hit $273.51 per share.

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