SolarCity and Model 3 (2016–2018)
Tesla entered the solar installation business in November 2016 with the purchase of SolarCity, in an all-stock $2.6 billion deal. The business was merged with Tesla's existing battery energy storage products division to form the Tesla Energy subsidiary.[46] The deal was controversial because at the time of the acquisition, SolarCity was facing liquidity issues of which Tesla's shareholders were not informed.[47] In February 2017, Tesla Motors changed its name to Tesla, Inc. to better reflect the scope of its expanded business.
Tesla unveiled its first mass market vehicle in April 2016, the Model 3 sedan. The Model 3 was less expensive than Tesla's previous three vehicles, and within a week, the company received over 325,000 paid reservations. To speed up production and control costs, Tesla invested heavily in robotics and automation to assemble the Model 3, but the robotics actually slowed the production of the vehicles.This led to significant delays and production problems, a period which the company described as "production hell" By the end of 2018, the production problems had been overcome, and the Model 3 became the world's best-selling electric car from 2018 to 2021.
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