The vehicle, which sells at £27,000 ($35,000) , has been ordered by more than 500,000 people and could revolutionise the industry.
The first batch of the affordable electric vehicles emerged from the company’s California factory on Friday, kick-starting an ambitious production drive that many think could revolutionise the industry.
More than 500,000 customers have placed deposits for the vehicles, which will now be produced at a rate of 5,000 a week, increasing to 10,000 a week next year.
Tesla founder Elon Musk called the Model 3 « the best car for its cost, either electric or gasoline », and called the achievement a major step towards the aim of an electric car « that everyone can buy ».
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The new vehicles will market at around £27,000 ($35,000) , significantly cheaper than the £60,000 ($80,000) price tag of Tesla’s current S and X models.
Mr Musk said revenue from the more expensive models has funded the new line.
Smaller than its higher-range predecessors and with fewer options, the Model 3 still comes equipped with on-board computers that Mr Musk says prepare it for a self-driving future.
But he added that coordinating thousands of parts from global suppliers meant that even small mishaps could cause delays to his ambitious targets.
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« Welcome to production hell, » he quipped at Friday’s launch. « This is where we are for at least six months. »
The majority of the vehicle’s first buyers are Tesla employees. Many ordering the Model 3 have been told not to expect their cars until next year.
While the high volume of orders has it tipped as a game-changer, the Model 3 is not the first affordable electric car on the market. GM’s Bolt model also sells at $35,000, but poor sales have recently prompted a pause in its production.
Mr Musk, an internationally renowned tech entrepreneur, also runs projects building rechargeable batteries to power homes, sending paying customers to the moon, and designing near-supersonic rail travel .
The impressive sales of the Model 3 could mark a breakthrough for Tesla and electric cars, which until now have comprised only a small portion of the auto market.
Gene Munster, an analyst with research firm Loup Ventures, said Tesla could transform the industry.
« We believe we will eventually look back at the launch of the Model 3 and compare it to the iPhone, which proved to be the catalyst for the shift to mobile computing, » he said.
