Tesla’s Model 3, which won’t ship for at least 18 months, will initially come as a sedan that seats five passengers, travels 215 miles on a charge, and has a starting price of $35,000.
Source: teslamotors.com. (Editor’s note: This is a prototype only. Model 3 features and ordering information may be found at https://www.teslamotors.com/model3.)
The formal announcement was staged as a major event, coincident with a detailed plan for customer preorders. Said Tesla one week later (April 7, 2016) in a blog post titled, “The Week that Electric Vehicles Went Mainstream”:
The latest parlor game for analysts is predicting how high Model 3 preorders will go before the car is actually delivered—this for an automobile that is essentially being ordered sight unseen. Forbes reported on remarks by Tesla vice president Diarmuid O’Connell at a conference last week, who said the Model 3 is “the car the company was really set up to build. It has exceeded all of our expectations as far as the rate at which we received reservations. Something approaching 400,000 people have already put down up to $1,000 dollars to reserve this car.”
To put some of the estimates in perspective, analytical firm Statista compared the initial Model 3 preorder projections to the cumulative sales of prior models (which all carry a much heftier price tag).
TESLA’S MODEL 3 PREORDERS IN PERSPECTIVE
Tesla’s cumulative Model S/X deliveries since 2012 compared to Model 3 preorders
Says Statista, “The question that remains is how quickly Tesla can meet the unexpectedly high demand for the Model 3. Deliveries are expected to start in late 2017 at the earliest, and Tesla has yet to prove it can ramp up production at this scale.”
Wall Street apparently looked past that detail over the past two months, with Tesla’s (TSLA) stock gaining about 90% from February 2016 lows to April highs shortly after the Model 3 announcement.
TESLA STOCK PRICES (11/2015–4/2016)
Lest anyone worry that Tesla is going too far “down-market” (and risks becoming the next Saturn, as one critic suggested), the company’s Model X P90D luxury SUV should forever repudiate that notion. Dan Neil of The Wall Street Journal gave the vehicle a glowing review after an extended test drive, extolling the “simultaneously unnecessary and absolutely vital” Falcon Wing doors, panoramic windshield, and the capability to impress the sidewalk crowd at “Nobu in West Hollywood.” With top-end options, this vehicle delivers 532 horsepower and carries a price tag around $135,000.
Source: teslamotors.com (Model X)