Tesla has seen its shares rise after founder Elon Musk announced the new Model 3 car would be ready two weeks earlier than was expected.
Tesla Shares Rise Ahead Of New Model 3 Car Launch
Mr. Musk said the Model 3, which is its cheapest vehicle so far, had undergone and passed all the required regulatory tests.
Referring to the five seater car, he wrote in a tweet, “Expecting to complete SN1 on Friday.”
Following this announcement, Tesla shares rallied by about 2 percent on Monday amid positive sentiments from investors.
Mr. Musk further noted that by December, production should reach 20,000 vehicles a month.
Tesla is attempting to cater to the mass market with its Model 3. The car will start selling at $35,000, close to half the price of the cheapest Tesla car.
Previously, Mr. Musk has said he aims to produce up to half a million cars each year once production comes to full capacity.
At the start of the year, Tesla was more valuable than Ford and General Motors to become the most valuable carmaker in the US.
Wall Street valued the company at $60bn compared with $46bn for Ford and $54bn for General Motors.
In the first quarter of the year, the firm built over 25,000 cars, a 70% increase from the same time last year.
Even though sales at the firm are showing rapid growth, they are only just a fraction of sales at Ford, which sold as many 6.7 million cars in 2016 while Tesla sold 76,000 electric cars in the same year.
Investors are generally excited about the growth opportunities at Tesla.
Ben Kallo, an energy technology analyst at Robert W Baird said, “Five years ago, no one knew about Tesla but today people want a Tesla. It has usurped BMW as an aspirational vehicle.”
He added that Mr. Musk’s charisma has allowed the firm to attract investors and talented staff.
In addition to its vehicle production, Tesla is investing heavily in battery production. The firm is building a factory in Nevada worth $5bn, which when complete will be the world’s largest.
Mr. Musk’s goal is to operate at a massive scale to be able to cut the cost of batteries by 30 percent and to innovate faster.
In addition to supplying car batteries, the company also builds batteries for businesses and homes.
Two months ago, China’s Tencent purchased a 5% stake in Tesla for the cost of $1.78bn.