On Monday, Tesla Motors Inc. (NASDAQ:TSLA) said reservations for Model 3 electric vehicle have reached 276,000 since the company started taking deposits on last Thursday. Tesla’s CEO Elon Musk posted the number of reservations on his Twitter, and said if the tend continues order will hit 500,000.
The Model 3 is a sedan capable of seating five and going 215 miles on a charge and 0-60 mph in less than 6 seconds, starting at a price of $35,000. “All efforts focused on accelerating the ramp,” Mr. Musk said in a tweet, his standard form of communication. Elon Musk also said Tesla Motors is planning to send out gifts to people who waited in line at Tesla stores as a token of appreciation.
Shares of Tesla Motors jumped up 5.16% to $249.85 during Monday morning trading which is the highest stock price since early October. During 2015, the company have traded in a rage from $141.05 to $286.65.
The enormous orders make Model 3 likely that many won't get a $7,500 U.S. electric car tax credit. The credit phases out when a manufacturer exceed 200,000 in U.S. sales. Tesla won't say how many of the orders came from the U.S., but Elon Musk said in his Twitter that a production ramp-up should help most of Model 3 buyers to get the U.S electric car tax credit.
The Model 3’s cost is less than 50% of Tesla's previous models, and its range is about double what drivers get from current competitors in its price range, such as the BMW i3 and Nissan Leaf. It also faces competition from General Motors, which is prepare to selling the Chevrolet Bolt electric car at the end of this year with a similar price tag and a 200-mile range.