Over the weekend, Tesla, Inc. (NASDAQ: TSLA) CEO Elon Musk released a picture of the first Model 3 sedan. In hopes of revolutionizing American driving, the Model 3 starts off with the astonishing price of $35,000 with over 380,000 people putting down $1,000 deposits before pictures were even released. This car is much smaller and less powerful than the Model S performance sedan which is priced at $100,000. It’s designed with the same sport back style and has an estimated range of 215 miles available with all the latest technology including the most advanced self-driving system. Tesla expects to make 30 Model 3 vehicles by the end of the month hoping to make 20,000 vehicles a month by December.
About a month ago, Tesla’s stock increased at high levels after announcements that the first Model 3 will be released in July. However, shares are still off more than $70. Events contributing to this include Volvo’s announced plans to release electric cars emphasizing that most manufacturers are moving to hybrid, plug in and pure battery electric power.
After Tesla’s announcement of the Model 3 on March 31, 2016 more than 300,000 advanced orders were made making the estimated amount now to be between 400,000 and 500,000. Tesla has about 18 months of back orders and deliveries which would not be completed until 2019 but they are still going to continue to book more early reservations. As the months go on, we will get to actually see if those reservations will lead to paid sales.