TESLA SHARES RISE WITH PRE- ORDERS
Tesla Motors investors took heart from the rush of interest in the Model 3 mass- market electric car Friday as pre- orders continued to pour in, driving up the Silicon Valley automaker’s stock.
Tesla shares jumped almost 8% to close at $ 237.59 Friday, hours after CEO Elon Musk tweeted at midday the order bank had hit 198,000. “Future of electric cars looking bright!” Musk wrote.
Even before people had seen the new car, Musk announced at the unveiling ceremony in a Los Angeles suburb Thursday night that pre- orders were at the 115,000 mark. Those who ordered had to put down a refundable $ 1,000.
That’s encouraging for a new model that will test whether Tesla can make electric cars appeal to the masses.
The Model 3 drove onto a stage through a curtain of fog at a lavish ceremony in a converted hangar adjoining the SpaceX rocket factory. Musk, who is CEO of both Tesla and SpaceX, vowed that the car will seat five, hit the highest safety marks and have a range of at least 215 miles per charge. First deliveries are expected late next year, Musk says.
The car’s profile is similar to
the Model S, lacking any adornment on the front where a grille would normally be. Musk says the car has trunks both front and rear. The extra space is due to its lack of a gas engine, because the car runs on batteries and electric motors alone. Inside, the car has a huge screen on the center console like other Teslas, though it is slightly smaller than on the Model S or X. It is also distinguished by a huge glass roof, which Musk says affords better headroom.
Though its performance won’t be nearly as breathtaking as its larger sibling, the super- luxury Model S, it will be impressive: zero to 60 mph in less than six seconds. To prove the point, Tesla offered test rides with a long straightaway in which the car hurtled down a side road at push- you- back- in- your- seat speeds in near silence.
The Model 3, Musk said, will be priced at $ 35,000, about half the cost of its two current models, the Model S sedan and Model X crossover. Musk tweeted Friday that with options, the average pre- order was closer to $ 42,000.
Investor reaction is important because of Tesla’s grand plans. Musk says Tesla aims to produce 500,000 cars a year, up from about 50,000 last year. To accomplish the goal, Tesla is building what Musk says will be the largest lithium- ion battery factory in the world outside Reno, Nev.
The new car will face some competition it hasn’t seen in the past.
General Motors, for instance, is introducing the Bolt, an electric with the lines of a small crossover with a range of about 200 miles and a price tag likely to be sim- ilar to the Tesla’s.
“Tesla has a history of introducing a vehicle with a reasonably low price and then selling versions that are much more expensive,” Jack Nerad, executive editorial director for Kelley Blue Book, said in a statement. “There was no mention of EV’s major Achilles’ heel — recharge time. The 215- mile range and long recharge times make EVs ( electric vehicles) impractical for many buyers.”