Photo of the Model 3 courtesy of Tesla.

Photo of the Model 3 courtesy of Tesla.

Tesla will begin building its Model 3 on Friday with a goal of producing 20,000 cars in December as it competes with the Chevrolet Bolt EV to offer an affordable battery-electric car with enough range to stoke wider EV adoption.

Tesla co-founder and CEO Elon Musk used Twitter early Monday to provide an update about the Model 3, which was expected to arrive later this year. Musk said 30 sedans would be ready for a "handover party" on July 28, when he will present them to the first buyers.

The Model 3 drew a crowd of potential buyers when it was announced in April of 2016, as the Palo Alto company collected more than 325,000 refundable $1,000 deposits.

The Model 3 is expected to have a price tag of about $35,000 before options and tax credits. It's expected to offer 215 miles of range per charge.

By comparison, the Bolt EV retails for $37,495 and provides 238 miles of range. GM has been selling the cars since December. Both vehicles are eligible for the $7,500 federal tax credit.