First deliveries of the affordable EV expected in late 2017.

When Tesla introduced the Model 3 earlier this year, probably no one believed it will turn into a big hit on the market. But the company reports about 400,000 preorders with $1,000 deposit as of late April – which means it will take serious efforts for the manufacturer to deliver all cars on time. In fact, as of May 15, Tesla says it has 373,000 preorders after 8,000 client cancelations and 4,200 duplicate orders. Still an impressive number.

Tesla hasn’t announced an exact date when Model 3 production will start, but has already promised first deliveries will be fact in late 2017. In order to “accelerate the production ramp of Model 3,” the Californian automaker will raise at least $1.4 billion through a secondary stock offering. An additional 5.5 million shares will be purchased by Tesla CEO Elon Musk through a stock option exercise.

The Model 3 production is expected to be the biggest test for the company in its history. A manufacturer that has never delivered a vehicle on time will have to work on the manufacturing process without two of its key players - Greg Reichow, vice president of production, and Josh Ensign, vice president of manufacturing, who left the brand in the beginning of May.

Source: Tesla via TheVerge

Check out:

Gallery: Tesla Model 3