Tesla gains after announcing new Model 3 production

Tesla is up 1.97% at $267.25 a share on Thursday morning amid news that the car company is getting its factory ready for Model 3 sedan production.

Tesla said on Wednesday it will shut down production at its California assembly plant for a week this month to prepare for production of its high-volume Model 3 sedan, moving the company closer to meeting its target to start production in July, Reuters reports

"This will allow Tesla to begin Model 3 production later this year as planned and enable us to start the ramp towards 500,000 vehicles annually in 2018," said a Tesla spokesman.

Tesla has a lot riding on the Model 3, which is priced at roughly $35,000 before government incentives. If successful, the sedan could raise Tesla beyond a niche luxury player in the automotive sector.

Tesla has not had a profitable year since going public in 2010.

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