In its letter to shareholders today, Tesla not only had good news to share about the last quarter (turned a profit for the first time in 3 years), but they also confirmed some good news for its ongoing plans for the future, including Model 3’s road to production.

Tesla confirmed that they completed production line layouts for the vehicle and they are now deep in the testing of the subsystems.

The automaker reiterated that they are on target for “volume production and deliveries of Model 3 in the second half of 2017”.

Here’s the relevant part of the Shareholders Letter (emphasis is mine):

“For Model 3, we have completed production line layouts and will soon begin installation of new body welding and final assembly lines. We have established a world-class team of suppliers for Model 3 production equipment and components and critical long lead time equipment and components have been sourced. We are now testing vehicle systems such as chassis, the high voltage drive system, and low voltage subsystems such as vehicle controllers, HVAC, infotainment and lighting. As refinement of the Model 3 continues, we remain on plan for our timing, volume, vehicle capability, pricing,and margin targets.”

Tesla wrote that it is still expanding production capacity at the Fremont facility, where it recently announced plans to almost double the size of the factory, but also that they are “exploring additional production capacity in Asia and Europe.”

Of course, the Gigafactory is still central to the timeline of the Model 3. Tesla confirmed that they are still “on track to begin cell production later this year.” We should know more about that on Friday as Tesla unveils its new ‘Tesla Energy’ products, which will be equipped with the new battery cells from the factory.

The company will ramp up production to match the growth of its ‘Tesla Energy’ products and then outpace them in mid-2017 to start supporting Model 3 production.

In conclusion, Tesla says that everything is going according to plan.

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