500,000 WANT A TESLA 3
Huge demand prompts bond issue
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.