Tesla Motors 3 Updated: Company Says Model 3 Reservations Surpass 276000

Tesla cars

Tesla Motors is excited that the bookings for its upcoming Model 3 electric car have crossed 276,000 after it started taking deposits on March 31.

In a tweet, Tesla CEO Elon Musk said: “All efforts focused on accelerating the ramp.”

Musk also promised that the company would send gifts to people who qued up at Tesla stores as a token of appreciation.

The Model 3’s prototype is expected to be unveiled in late 2017. Analysts agree that the bookings are staggering and mark an evolution of Tesla and its concept of electric cars.

Going by the rush for Model 3, there is the expectation that it may outsell BMW sedan, which is the US’s best-selling compact luxury car if Tesla can offer enough cars.

On Sunday, Musk tweeted that the Model 3 will be a rear-wheel-drive car and offer all-wheel-drive as an option.

In real terms, the 276,000 reservations translate to an $11.6 billion backlog of orders. The assessment at Tesla is that the normal Model 3 would cost an average $42,000 subject to options.

The highlights of the sedan, Model 3, are– it is a five-seater that can cover 215 miles on a charge and cruise 0-60 mph in less than 6 seconds. The starting price has been set at US$35,000 (AU$45,000), reports The Wall Street Journal.

However, a reservation is a no confirmed order until the reservation holder gets an order agreement later.

Analysts say the interest in Model 3 is surprising despite the fact that no shipping will take place for at least 18 months. That is a challenge for the automaker as well as there is just about 20 months to ramp up production amid the quarterly losses.

The orders have given Tesla ample cash to ramp up manufacturing and also made the market overflow with enthusiasm over electric vehicles. It also reinforced an opportunity for the youngest publicly traded US automaker a pathway to profitability. Musk said he is “fairly confident” of deliveries from 2017.

“We have an amazing product. I think you’ll be blown away,” Musk added. “You will not be able to buy a better car for US$35,000, or even close. It’s a really good car, even with no options,”

“You will not be able to buy a better car for US$35,000, or even close. It’s a really good car, even with no options,”

Musk was speaking at the company’s design studio in Hawthorne, California, reports Malay Mail.  With Model 3, the CEO is trying to reach out to new sections beyond the most affluent buyer class in a bid to make electric vehicles a bigger part of the market.

“Tesla has changed the game again,” noted Andrea James, an analyst with Dougherty & Co.

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