Tesla Model 3 release date news: Model S winding down ahead of Model 3 launch this year

A Tesla Model S charges at a Tesla Supercharger station in Cabazon, California, U.S. May 18, 2016.REUTERS/Sam Mircovich

After missing previous release deadlines, Tesla is under a lot of pressure to get things right with the roll out of the highly anticipated Tesla Model 3. 

The Model 3 is all set to begin production in July 2017 and car enthusiasts are expecting the car to start shipping before the end of the year. 

EcumenicalNews reports that the first 100,000 units will ship before the end of 2017, as long as Tesla stays on top of its schedule. 

Indeed, we know we're getting closer and closer to seeing the awesome electric car as Tesla recently sent out an email announcing that it would not be accepting orders for the Model S after April 16 and it's likely to have something to do with the imminent Model 3. 

Tesla already has around 400,000 reservations under its belt and the question on everyone's lips is whether the car manufacturer can carry through on delivery. 

StarzPost speculates that with such a high order level, it's possible some reservation holders won't get their car until late 2018.

It seems Tesla CEO Elon Musk is all too aware of the concerns and has been seeking to reassure buyers and prospective buyers.

According to Electrek, Musk admitted the company needed to invest in delivery.

"The delivery of the cars is where the investment is needed," Musk reportedly said. "We need to deliver three or four times as many cars. But we don't want to have three or four times as many delivery centers."

Tesla's former vice president of supply chain management Peter Carlsson previously commented that some changes had been made to ease the pressure on the delivery side of the Model 3.

"Things will get a bit easier. Tesla has resolved some issues through vertical integration — doing things internally. And with the launch of the Model 3, the volumes of the business will be more attractive, and I think we will see more suppliers relocate," Carlsson explained.

According to Electrek, Tesla is closing orders for the Model S 60 and Model S 60D on April 16 to streamline the ordering process.  After this date, remaining 60kWh models will be upgraded to 75kWH, The Verge reports.

The Motley Fool speculates that Tesla is clearing out the Model S 60 and S 60D to make way for the Model 3 as it cranks up production ahead of the first shipments due out by the end of the year.

The basic Model 3 starts at $35,000, although there will probably be numerous options to upgrade at an extra cost.  But it seems possible Tesla could be trying to clearly differentiate between a more budget-friendly Model 3 and its more premium models.

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