Tesla to build Model 3 test vehicles this month: report

Tesla Inc. will produce test versions of its Model 3 vehicle this month, Reuters reported Wednesday afternoon, ahead of a mid-year deadline to start production of the new car. Anonymous sources told Reuters that the electric-car company plans to begin test-building the sedans at its Fremont, Calif., factory on Feb. 20, two days before Tesla details fourth-quarter earnings. Tesla has already disclosed disappointing fourth-quarter deliveries, though that hasn't hurt its stock price, which is up 22.6% so far in 2017. Chief Executive Elon Musk has framed the Model 3 as his attempt to offer an electric car for the masses, with a targeted starting price of around $35,000, and an important piece of his plan for the company. After revealing the car at an event last April, Tesla reported more than 370,000 reservations were taken to purchase one, a move that required customers to put up $1,000. Musk has promised to reach a production rate of 500,000 cars by the end of 2018 to meet that demand, though the company failed to deliver its stated goal of at least 80,000 cars in 2016.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.