Pre-Orders for Tesla’s Model 3 Go Beyond $10 Billion Only for the First 36 Hours

To fill all the preorders, Tesla will have to boost annual capacity.

Update 08/04/2016: Tesla announced Thursday that it has received 325,000 pre-orders for its recently announced Model 3. If the company sells every car that’s been reserved, it will earn enough revenue to make this the “biggest one-week launch of any product ever.”

Tesla’s Model 3 is breaking all records in preorders. Tesla Motors Inc has got 253,000 enquiries only for the first 36 hours. It seems to be a promising start for the vehicle that will go on sale in 18 months or later.

This intense public interest positively influences Tesla’s stock price, which closed Friday at $237.59, up 3.4 percent. The stock has increased more than 60 percent since hitting a 12-month low in February.

However, the situation can have a fly in the ointment. Some analysts estimate that it might be rather challenging for the company to fill all the initial Model 3 orders, which are accompanied by a refundable $1,000 deposit, until 2020.

As a response, Tesla is aiming to boost annual capacity to 500,000 by 2020. The production of the Model 3 is expected to ramp up slowly through 2019. For this purpose, Tesla has already undertaken a costly expansion of the Fremont plant.

Initially the price of the Model 3 was announced as $35,000. However, according to analysts’ estimates, the new Tesla can be loaded with extra equipment and sell for $50,000 to$60,000.

The Model 3 was unveiled last week at the company’s design studio in Hawthorne, California. Tesla CEO Elon Musk expressed absolute confidence that it is impossible to buy a better car for $35,000, even with no options. The Model 3 will be one of the safest cars in the world.

The Model 3 differs from Models S and X by a 15-inch landscape touchscreen (previous models have the 17-inch portrait touchscreen). However, it also comes in both rear-wheel drive and all-wheel drive versions.

It has standard autopilot hardware and all automated safety features. The Model 3 is comfortable for five adults — “comfort is the important part here,” says Musk. You can even fit a 7-foot long surfboard on the inside.

The Verge deputy editor Chris Ziegler, who actually rode in the Model 3 last week, shares his impressions: “The Model 3 definitely looks and feels like a Tesla. If you completely debadged it and hid the giveaway design elements, you’d still know it was a Tesla. You know it from features like the unreal glass roof that extends basically from the windshield to the back of the car, reminiscent of the giant windshield on the Model X.”

He continues: “The seats have Tesla’s trademark shape, too. And it’s fast like a Tesla — granted, Tesla stacked the deck in its favor by putting journalists in an uprated dual-motor Model 3 that definitely won’t be $35,000, but even with four grown men planted in the seats, the car moves. Stomping on the accelerator of a Model S never gets old, and I can tell already that doing silly things in the Model 3 will put that familiar grin on my face.”

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