500,000 WANT A TESLA 3

Huge de­mand prompts bond is­sue

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The mas­sive de­mand for Tesla’s new $35,000 Model 3 shows that we are ready for the main­stream elec­tric car—the com­pany had over half a mil­lion reser­va­tions on its books at one point. This makes it the most an­tic­i­pated car ever. To fund man­u­fac­tur­ing, Tesla has been forced to sell $1.5 bil­lion in bonds, and the money men look happy enough to buy them. Over the first quar­ter of 2017, it built 25,000 cars, a new record for Tesla, but a long way from its plan for 500,000 a year—even at this level, it is un­der a tenth of Ford’s an­nual pro­duc­tion. Tesla has a lot rid­ing on the Model 3; de­spite catch­ing the zeit­geist beau­ti­fully, the com­pany still made a loss of over $330 mil­lion last year.

The list of prob­lems for the elec­tric cars is long, from ad­e­quate charg­ing sta­tions to thornier prob­lems, such as se­cur­ing sup­plies of cobalt. How­ever, mo­men­tum is build­ing—we are go­ing to go elec­tric folks.

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