Tesla starting Model 3 production from this week.

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CEO Elon Musk announced that production of its mass-market Model 3 would start this week and build to 20,000 per month.

Shares fell 2.5% in regular trade on Monday to $352.62 after the Model 3 comments and eased down a touch more in after hours trade, following the first-half report.Most investors are focused on the outlook for the Model 3, and some analysts have been skeptical about its planned July launch after production delays and quality issues marred the launches of the Model S and Model X.

Tesla’s shares are up more than 60% this year, partly on expectations of a strong launch for its Model 3, the first car the company has aimed at the mass market. Tesla has a market value of $58 billion, greater than either General Motors Co or Ford Motor Co.

Tesla said a “severe shortfall” of new battery packs had constrained vehicle manufacturing until June, and it forecast that second-half deliveries of the Model S sedan and Model X sports utility vehicle likely would exceed those of the first half. It had forecast first-half deliveries of 47,000 to 50,000.

In a series of posts on Twitter late on Sunday, Musk said the Model 3 had passed all regulatory requirements for production two weeks ahead of schedule.

“Production grows exponentially, so Aug should be 100 cars and Sept above 1,500,” Musk said. “Looks like we can reach 20,000 Model 3 cars per month in Dec.”

Tesla said a “severe shortfall” of new battery packs had constrained vehicle manufacturing until June, and it forecast that second-half deliveries of the Model S sedan and Model X sports utility vehicle likely would exceed those of the first half. It had forecast first-half deliveries of 47,000 to 50,000.

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