An Elec­tric Car Named De­sire

Re­tail value of ini­tial flurry of or­ders for Model 3, which will roll out in 2017, is over $10b Elec­tri­fy­ing Launch

The Economic Times - - Business Of Brands -

Detroit: Tesla Mo­tors’ CEO says world­wide or­ders for a new lower-priced elec­tric car hit 276,000 dur­ing the week­end. CEO Elon Musk posted the num­ber Sun­day on his Twit­ter feed. He says if the trend con­tin­ues or­ders will hit 500,000.

Tesla's new Model 3 starts at $35,000 and has a range of 215 miles per charge. Cus­tomers must put down $1,000 to or­der the cars, which go on sale in late 2017. The com­pany started tak­ing or­ders early Thurs­day be­fore Musk un­veiled the new car.

Musk says in tweets that the com­pany is fo­cus­ing on ramp­ing up pro­duc­tion and even­tu­ally will need to build a fac­tory in Europe to sat­isfy de­mand.

Shares of Tesla hit $249.85 early Mon­day, their highest in­tra­day price since early Oc­to­ber. In the past year they have traded in a rage from $141.05 to $286.65.

He says the car will be rear­wheel-drive with op­tional all­wheel-drive, and its steer­ing con­trols will feel like a spa­ces- hip. The large num­ber of or­ders makes it likely that many won't get a $7,500 US elec­tric car tax credit. The credit phases out when a man­u­fac­turer hits 200,000 in US sales. Tesla won't say how many of the or­ders came from the US, but Musk says in tweets that a pro­duc­tion ramp-up should let large num­bers of Model 3 cus­tomers get the tax credit.

Tesla plans to have a pres­ence in In­dia be­fore Model 3 pro­duc­tion starts, and its high-speed charg­ing sys­tem and ser­vice will cover all of Italy later this year, Musk says.

The Model 3 is less than half the cost of Tesla's pre­vi­ous mod­els, and its range is about dou­ble what driv­ers get from cur­rent com­peti­tors in its price range, such as the Nis­san Leaf and BMW i3.

It also faces com­pe­ti­tion from General Mo­tors, which is

The Model 3 is less than half the cost of Tesla's pre­vi­ous mod­els, and its range is about dou­ble of the Nis­san Leaf and BMW i3

set to start sell­ing the Chevro­let Bolt elec­tric car at the end of this year with a sim­i­lar price tag and a 200-mile range. Some an­a­lysts said the com­pany could have trou­ble fill­ing all the ini­tial Model 3 or­ders, which are ac­com­pa­nied by a re­fund­able $1,000 de­posit, un­til 2020. Bar­clays an­a­lyst Brian John­son on Fri­day said the heavy in­flux of Model 3 or­ders “sets the stage for an eq­uity of­fer­ing” later this year by Tesla, much of which would go to­ward fac­tory con­struc­tion and prod­uct devel­op­ment. John­son had es­ti­mated Tesla could take 250,000300,000 or­ders for the car by the end of June.

Num­ber of cars sold dur­ing the week­end De­posit for book­ing the Model 3, re­fund­able on can­cel­la­tion Gain in Tesla’s stock af­ter hit­ting a 12-month low in Fe­bru­ary

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