By Prachi Makkar,
Money & Investing Writer
The anticipation is at an all-time high for the new Tesla Model 3, a sleek yet affordable version of the luxurious Tesla. They are known for their unique and impressive electric cars.
Many people want a Tesla (NASDAQ: TSLA) but prior to the Model 3, could not afford to buy it.
This new Tesla Model 3 is $35,000 which is at half of the price of the Model S, $70,000.
This is the starting price of the car and the Model 3 with options with be priced roughly around $42,000.
The Model 3 is a five seater, rear wheel drive, sedan with the classic Tesla look. The car is able to go 215 miles on one charge and is able to go from 0 – 60 mph in less than six seconds.
The public is really looking forward to being able to buy their own Tesla at a price that won’t break their wallets.
Model 3 can end up costing near $25,000 with state and federal tax incentives included and since it is an electric car drivers will save gas money too.
Customers right now are only able to pre-order the Model 3 because it will be officially releasing in 2017.
To reserve the car, customers put down a refundable deposit of $1,000.
The people who have reservations will receive an order agreement to formally have an order. Throughout the entire process, Elon Musk has been very vocal on twitter and has been constantly updating the Tesla fans.
Elon Musk tweeted that customers are only able to pre-order two cars per person. Just a mere week after announcing the new Model 3 car, there were 325,000 pre-orders put in with a deposit.
They secured 135,000 orders on the first day alone. Only with the $1,000 deposit, Tesla has managed to rake in $325 million.
Based on the number of orders and the retail price of $35,000 this number of sales translates to more than $11 billion in sales. The number is bound to be larger because this only includes people who pre-ordered the car, not the ones who are waiting for its big release to buy the car.
This massive number of orders surpasses sales for all electric cars, not just Teslas, in 2014, 120,000 electric cars, and 2015, 115,000 electric cars.
Last year in the US, the Tesla Model S was the best- selling electric car with 25,700 cars sold.
The BMW 3 series sedan, roughly the same size and price as the Tesla Model 3, sold 95,000 cars in the U.S. in 2015. In its first year of production the Model 3 is going to outsell the U.S.’s best-selling compact luxury car. The Model 3 is set to beat out many existing luxury and electric cars.
Tesla’s global revenues last year were about $4 billion and with the projected sales of this car, that is highly likely to grow.
So far, Tesla has shipped around 110,000 cars most of which were the Model S sedans.
A problem that they have faced is manufacturing. They are slowly ramping up production for Model X, their sport-utility vehicle.
The high level of interest and confidence in the Model 3 shows the company that they need to improve their manufacturing and produce a very large amount of cars. Tesla is definitely a stock to watch with their anticipated growth and new car models.
A version of this article appeared in the Tuesday, April 12th print edition.
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