Tesla said Wednesday that its Model 3 program is "on track" to start limited volume production in July, with volume production reached by September.
From there, the company will steadily ramp up to produce more than 5,000 vehicles per week by some point in the fourth quarter. By 2018, it should reach production of 10,000 vehicles per week.
The electric vehicle maker said volume deliveries of the Model 3 should begin in the second half of 2017.
The Model 3, which is priced starting at $35,000, is a major step for the company as it will mark Tesla's transition from a small niche manufacturer of high-end electric vehicles to a mass market manufacturer.
Tesla's update on the Model 3 comes as the company reported a wider-than-expected fourth-quarter loss even though its sales were higher than expected.
"Ahead of the Model 3 launch, we are reengineering and expanding our operations as we anticipate the needs of a much larger family of Tesla owners," the company said in a letter to investors.