Tesla Model 3 Orders Surge Even Before Its Unveiling

Tesla Motors says its new Model 3 is, at $35,000 each, meant to bring the company’s electric vehicle technology to the masses. And with more than 115,000 orders before the car was even introduced, it is well on its way.

A crowd of Tesla fans cheered as the Model 3, a sleek five-seater, was unveiled Thursday evening at the company’s design studio in Hawthorne, Calif. Interested customers lined up at Tesla dealerships around the country, and the enthusiasm was matched with a torrent of comments online.

The Model 3 is “the final step in the master plan, which is a mass market, affordable car,” Tesla’s chief executive, Elon Musk, said at the unveiling. “It was only possible to do after going through the prior steps.”

The vehicle comes after years of lower-volume production of Tesla’s initial Roadster, Model S and Model X.

“With any new technology, it takes multiple iterations and it takes economies of scale before you can make it great and affordable,” Mr. Musk said.

The Model 3 will be able to travel at least 215 miles on a single charge and can go from 0 to 60 miles per hour in less than six seconds.

Each advance order included a charge of $1,000, and the company took in more than $115 million within 24 hours. If those orders all translate into sales, revenue from the Model 3 will exceed $4 billion. A screen at the debut event Thursday showed online reservations continuing to tick past 133,000.

“This is kind of crazy,” Mr. Musk said in announcing the number of advance orders.

Although the Model 3 unveiling generated intense buzz, the company faces competition from automotive giants like General Motors and Renault-Nissan, which have also begun manufacturing electric vehicles. Low fuel prices could hurt overall sales of electric vehicles.

But on Thursday, Mr. Musk’s biggest worry appeared to be satisfying demand for his new car. Delivery of the Model 3 is scheduled to begin at the end of 2017, first for customers on the West Coast of North America, then the East Coast, and then overseas.

“I do feel fairly confident it will be next year,” Mr. Musk said to laughter from the audience.

Meeting anticipated interest in the cheaper model will require a sharp increase in Tesla’s production capacity. Last year the company delivered 50,580 vehicles.

Mr. Musk said Thursday that he believed the company’s factory in Fremont, Calif., could produce as many as 500,000 vehicles annually.

“It’s very doable,” he said.

The post Tesla Model 3 Orders Surge Even Before Its Unveiling appeared first on Fleet Management Weekly.

from Fleet Management Weekly http://ift.tt/1q9PWGs

Sourced by Quik DMV - CADMV fleet registration services. Renew your registration online in only 10 minutes. No DMV visits, no lines, no phone mazes, and no appointments needed. Visit Quik, Click, Pay & Print your registration from home or any local print shop.