Tesla Model 3 Release Date News: Automaker's Lack of Beta Prototypes to Cause Delay in Production?
Tesla insists that production of the Model 3 is on track to start in July. However, this timeline continues to be scrutinized by analysts and consumers alike, especially after it was revealed that the automaker did not have prototypes of the upcoming entry-level all-electric sedan available for testing at the end of 2016.
In Tesla's annual filing with the U.S. Securities and Exchange Commission, the company revealed, "We expect that the next performance milestone to be achieved will be the successful completion of the Model 3 Beta Prototype, which would be achieved upon the determination by our Board of Directors that an eligible prototype has been completed."
The report covers the company's dealings up until Dec. 31, 2016, so it's possible that Tesla has managed to produce prototypes of the Model 3 in the past two months. Nevertheless, the prevailing thought right now is that release of the Model 3 will be delayed.
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Goldman Sachs analyst David Tamberrino said the Model 3 will be late and Tesla will have to raise capital later this year.
"Ultimately we see a delayed launch (pushing volume growth out and to the right) and FCF burn rate (necessitating a capital raise before 4Q17) to weigh on TSLA's shares," he said in a note to clients.
The amount of scrutiny and stress that Tesla is facing seems to be affecting the employees as the company continues to lose key people. At the end of February, Jason Wheeler, Tesla's chief financial officer, announced that he would be leaving just 15 months after he joined the company.
Bloomberg noted that several other executives have left the company over the past year due to reasons such as "long hours in the rush to high-volume production, mission creep, and a tense culture."
Meanwhile, in anticipation for the Model 3's arrival, Tesla has launched a video contest inspired by an open letter from 10-year-old Bria Loveday.
Dubbed "Project Loveday," fans are encouraged to submit a video commercial, 90 seconds or less. The contest will end on May 8 and winners will be announced on May 22.
According to Teslarati, Tesla's announcement that prizes must be claimed by June 2 seems to hint that there will be a press event on the same day where more details about Model 3 will be announced.
