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Tesla to begin pilot production of Model 3 on February 20
Tesla has put Model 3 suppliers on notice that the company intends to start test building the Model 3 on February 20. Manufacturers often test build new models to verify that the assembly line is configured properly, to assess the build quality before full production starts, and to check on the quality of the parts that will be used in manufacture. The source who supplied the information to Reuters did not indicate how many Model 3 vehicles would be involved in the test build.
The pushback of Tesla’s fourth quarter earnings call to February 22, and two days after Model 3 pilot production begins, isn’t a coincidence. “What better way to stoke the fan base and Wall Street than to wheel out pre-production models” ahead of the earnings announcement, said one person familiar with Tesla’s plans who spoke on condition of anonymity.
A spokesperson for Tesla declined to comment on the company’s production schedule, but said “our ramp-up in production moves as fast as the slowest and least lucky supplier.” Musk had told investors last year that the company could miss the July 2017 startup target if suppliers do not meet deadlines.
Investors are nervous about the start of production for the Model 3 because Tesla has experienced numerous delays in bringing its automobiles to market on time in the past. If it is late to market with the Model 3, that could put negative pressure on the company’s stock price. Tesla’s current market capitalization of about $41 billion is equivalent to that of Nissan, which produced just over 5.5 million cars in 2016. Tesla produced 83,922.
The company had serious problems getting the Model X into volume production, due in part to issues involving its innovative Falcon Wing doors and in part to build quality and parts supply problems. Many interested observers are expecting the company to have similar issues bringing the Model 3 to market on time. But if Tesla can hit the very aggressive targets set by Musk, it’s stock value could improve significantly.
Red Tesla Model 3 at the vehicle unveiling event on March 31, 2016 from the company’s Hawthorne, CA Design Center.
Last May, Tesla announced it had taken 373,000 refundable $1,000 deposits for the Model 3 from customers around the world, making the Model 3 the most successful new car model in history. Musk says the company will be building 500,000 cars a year by the end of next year — another bold projection that some analysts find hard to believe.
“We assume “0” Model 3 deliveries in ’17,” Barclays analyst Brian Johnson wrote in a Jan. 3 note. Morgan Stanley’s Adam Jonas in a Jan. 19 note said he expected a “soft launch” of the Model 3 to be delayed until late 2017. Nonetheless, Jonas has raised his target price for Tesla stock to $305 per share.
Whether the company meets or beats its own self imposed deadlines for the Model 3, there is no doubt the Model 3 is the most anticipated new car in the world. The Tesla faithful would love for Tesla to hit its marks, but if the cars are delayed — even substantially — investors may lose faith in the company temporarily but its customers never will.
Tesla has expanded its branded ‘For Business’ Supercharger program that it launched last year, as yet another company is using the platform to attract EV owners to its business and utilize a unique advertising opportunity.
Francis Energy of Oklahoma is launching four Superchargers in Norman, where the University of Oklahoma is located. The Superchargers, which are fitted with branding for Francis Energy, will officially open tomorrow.
It will not be the final Supercharger location that Francis Energy plans to open, the company confirmed to EVWire.
Back in early September, Tesla launched the new “Supercharger for Business” program in an effort to give businesses the ability to offer EV charging at custom rates. It would give their businesses visibility and would also cater to employees or customers.
“Purchase and install Superchargers at your business,” Tesla wrote on a page on its website for the new program. “Superchargers are compatible with all electric vehicles, bringing EV drivers to your business by offering convenient, reliable charging.”
The first site opened in Land O’ Lakes, Florida, which is Northeast of Tampa, as a company called Suncoast launched the Superchargers for local EV owners.
Tesla launches its new branded Supercharger for Business with first active station
The program also does a great job at expanding infrastructure for EV owners, which is something that needs to be done to encourage more people to purchase Teslas and other electric cars.
Francis Energy operates at least 14 EV charging locations in Oklahoma, spanning from Durant to Oklahoma City and nearly everywhere in between. Filings from the company, listed by Supercharge.info, show the company’s plans to convert some of them to Tesla Superchargers, potentially utilizing the new Supercharger for Business program to advertise.
Moving forward, more companies will likely utilize Tesla’s Supercharger for Business program as it presents major advantages in a variety of ways, especially with advertising and creating a place for EV drivers to gain range in their cars.
Tesla Cybercab is perhaps the most highly-anticipated project that the company plans to roll out this year, and as it is undergoing its testing phase in pre-production currently, there are some things to work through with it.
Over the weekend, an image of the Cybercab being loaded onto a tow truck started circulating on the internet, and people began to speculate as to what the issue could be.
Hmmmmmm… https://t.co/L5hWcOXQkb pic.twitter.com/OJBDyHNTMj
— TESLARATI (@Teslarati) January 11, 2026
The Cybercab can clearly be seen with a Police Officer and perhaps the tow truck driver by its side, being loaded onto, or even potentially unloaded from, the truck.
However, it seems unlikely it was being offloaded, as its operation would get it to this point for testing to begin with.
It appears, at first glance, that it needs assistance getting back to wherever it came from; likely Gigafactory Texas or potentially a Bay Area facility.
The Cybercab was also spotted in Buffalo, New York, last week, potentially undergoing cold-weather testing, but it doesn’t appear that’s where this incident took place.
It is important to remember that the Cybercab is currently undergoing some rigorous testing scenarios, which include range tests and routine public road operation. These things help Tesla assess any potential issue the vehicle could run into after it starts routine production and heads to customers, or for the Robotaxi platform operation.
This is not a one-off issue, either. Tesla had some instances with the Semi where it was seen broken down on the side of a highway three years ago. The all-electric Semi has gone on to be successful in its early pilot program, as companies like Frito-Lay and PepsiCo. have had very positive remarks.
The Cybercab’s future is bright, and it is important to note that no vehicle model has ever gone its full life without a breakdown. It happens, it’s a car.
Nevertheless, it is important to note that there has been no official word on what happened with this particular Cybercab unit, but it is crucial to remember that this is the pre-production testing phase, and these things are more constructive than anything.
Tesla analyst Andrew Percoco of Morgan Stanley teased the company’s dominance in its self-driving initiative, stating that its lead over competitors is “not even close.”
Percoco recently overtook coverage of Tesla stock from Adam Jonas, who had covered the company at Morgan Stanley for years. Percoco is handling Tesla now that Jonas is covering embodied AI stocks and no longer automotive.
His first move after grabbing coverage was to adjust the price target from $410 to $425, as well as the rating from ‘Overweight’ to ‘Equal Weight.’
Percoco’s new note regarding Tesla highlights the company’s extensive lead in self-driving and autonomy projects, something that it has plenty of competition in, but has established its prowess over the past few years.
He writes:
“It’s not even close. Tesla continues to lead in autonomous driving, even as Nvidia rolls out new technology aimed at helping other automakers build driverless systems.”
Percoco’s main point regarding Tesla’s advantage is the company’s ability to collect large amounts of training data through its massive fleet, as millions of cars are driving throughout the world and gathering millions of miles of vehicle behavior on the road.
This is the main point that Percoco makes regarding Tesla’s lead in the entire autonomy sector: data is King, and Tesla has the most of it.
One big story that has hit the news over the past week is that of NVIDIA and its own self-driving suite, called Alpamayo. NVIDIA launched this open-source AI program last week, but it differs from Tesla’s in a significant fashion, especially from a hardware perspective, as it plans to use a combination of LiDAR, Radar, and Vision (Cameras) to operate.
Percoco said that NVIDIA’s announcement does not impact Morgan Stanley’s long-term opinions on Tesla and its strength or prowess in self-driving.
NVIDIA CEO Jensen Huang commends Tesla’s Elon Musk for early belief
And, for what it’s worth, NVIDIA CEO Jensen Huang even said some remarkable things about Tesla following the launch of Alpamayo:
“I think the Tesla stack is the most advanced autonomous vehicle stack in the world. I’m fairly certain they were already using end-to-end AI. Whether their AI did reasoning or not is somewhat secondary to that first part.”
Percoco reiterated both the $425 price target and the ‘Equal Weight’ rating on Tesla shares.
Tesla expands its branded ‘For Business’ Superchargers
Tesla Cybercab ‘breakdown’ image likely is not what it seems
