Tesla, Inc. (NASDAQ: TSLA) will launch its highly anticipated Model 3 sedan in California on Friday. According to Business Insider, the first 30 models will be shipped to employees at Tesla’s Fremont factory.
The company expects that the affordable model, at a starting price of $35,000, will quintuple its sales by 2018 and draw in millions by 2020. Since its 2010 IPO, Tesla has only reported profits in two quarters, compared to the steady profit that companies, like Fiat Chrysler Automobiles and Ford, have been posting.
The San Francisco based corporation has struggled with manufacturing, as both the Model S and Model X were heavily delayed and experienced production problems. However, if the four-door sedan, with nearly 500,000 preorders, could achieve profitability and volume, the Model 3 would enhance Tesla’s bid as a future leader in the industry.
The company has rushed the production of the vehicle by skipping a prototype stage and going directly into mass production. This means that the Model 3 could appear in large numbers by mid-2018, but there is an increased probability of a recall that comes with an accelerated manufacturing process.
As the automobile industry has shifted to SUV’s and crossovers, Tesla’s sedan is a standout to consumers. The company has dominated the all-electric vehicle market for 13 years, but has yet to report any outstanding quarters. The Model 3 will serve as a product that can compete in the industry.