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Tesla Model 3 Update: 2017 Limited Release Very Likely

A lot of things have to go right for Tesla, but a 2017 release for the Tesla Model 3 is very likely, even if not up to the volume that the company has promised.

An exclusive report by Reuters has the details on Tesla's plan to shut down its main assembly plant. The production facility based in California will take a break to be prepared for high-volume production of the Model 3 sedan, which is currently in very high demand.

"This will allow Tesla to begin Model 3 production later this year as planned and enable us to start the ramp towards 500,000 vehicles annually in 2018," says a Tesla representative who spoke with Reuters.

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Some other sources also disclosed that Tesla has plans to begin test-building the Model 3 on Feb. 20. If the information is correct, the first units are probably being assembled right this very minute.

As if to lend weight to that information, Electrek reported on Feb. 20 a set of leaks of what could be the Model 3 chassis and a glimpse of the car's production facility. The Instagram posts were taken down later, but not before the images of a body frame and an entire floor of assemblers were saved for posterity.

While it is yet unknown how many Tesla 3 pre-production builds will be made this month, it will probably be a big enough batch to cover quality and compliance tests. Also, "what better way to stoke the fan base and Wall Street than to wheel out pre-production models," said one source familiar with Tesla's plans.

The early test builds will enable the company to run real-world road trials and give ample time for government agencies to do regulatory checks on the cars. It will be very visible to industry watchers if Tesla is on track for a July production start — Model 3 cars will be seen on test tracks, as promotions in the company's showrooms, and maybe as previewed by car reviewers. Business Insider thinks that the company can definitely put out even just a few of the cars by the end of 2017.

If things go as planned for Tesla, it's even possible they can launch the Model 3 by the third quarter of this year.

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