$35,000 Model 3 to reach volume production mid-year, says CEO

Tesla Inc CEO Elon Musk stated on Monday production of the $35,000 version of the automaker’s Model 3 will start this month, but would not reach “volume production” until mid-2019.

“Gap in understanding is that $35k Model 3 production *starts* this month, but will not reach volume production until mid year. Extremely difficult to predict middle part of manufacturing S-curve,” Musk wrote in response to a tweet.

Gap in understanding is that $35k Model 3 production *starts* this month, but will not reach volume production until mid year. Extremely difficult to predict middle part of manufacturing S-curve.

— Elon Musk (@elonmusk) March 4, 2019

It was not that clear what Musk meant by “volume production”. Tesla did not replied to a request for comment.

The release of the $35,000 version, Tesla’s cheapest model, last week comes at a crucial period for the company as some experts had raised concerns that demand for the costlier versions of the Model 3 was starting to dry up in the United States, particularly after a federal tax credit was cut in half in 2019.

Tesla also stated last week its worldwide sales would now be online-only, in a bid to slash overhead costs.