Tesla Model 3 Orders Reach 276,000 Units

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk tweeted that the orders for Tesla Model 3 electric vehicle reached 276,000 units as of Saturday, April 2.

The number significantly exceeded the 100,000 orders expected by Wall Street analysts over the next two weeks. Customers showed a strong interest for Tesla Model 3, which is intended for the mass market and is considered by Wall Street analysts as critical for the success of Tesla Motors.

The price of Tesla Model 3 starts at $35,000. Musk said the average selling price for the electric car was $42,000 including the price for option and additional features, which means Tesla Motors will probably obtain $11.5 billion from the initial orders.

Take note that the $1,000 deposit for the electric vehicle is fully refundable until 2024.  The electric car manufacturer is expected to start delivering the Model 3 to customers in late 2017.

Tesla Model 3 features

Tesla Motors unveiled the Model 3 in Hawthorne, California on Thursday, October 31. According to Musk, customers will not be disappointed in buying the Tesla Model 3 because it received the highest safety rating.

Musk said the Model 3 has a range of at least 215 miles per charge and it can accelerate from zero to 60 miles per hours in less than 6 seconds. The electric vehicle is spacious with headroom and seats five people comfortably.

According to Musk, the Tesla Model 3 has “more cargo capacity than any gasoline car of the same external dimensions. You can even fit a 7-foot long surfboard on the inside.

The Model 3 is equipped with semi-autonomous driving features such as automatic lane changing and lane keeping. Its safety features will be active automatically. The electric vehicle is available in both rear-wheel drive and all-wheel drive versions. It comes with a 15-inch landscape touch-screen.

“You will not be able to buy a better car for $35,000 even with no options. It will be one of the safest cars in the world, said Musk.

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Tesla stock soars on Friday

The stock price of Tesla Motors rallied 3.4% to $237.59 per share on Friday. Over the past 52-weeks, the stock traded between $141.05 per share and $286.65 per share.

Barclays analyst Brian Johnson suggested that the strong orders for Tesla Model 3 “sets the stage for an equity offering” later this year by the company, which is expected to spend most of the proceeds toward its factory construction and product development.

Johnson estimated that Tesla Motors will receive as much as 300,000 orders for Tesla Model 3 by the end of June.

“A Model 3 order gives you priority in your geography, so, even tho total count is high, ordering early will make a big difference locally,” tweeted Musk on Sunday.