Tesla stock moves to new highs as excitement over the Model 3 continues to increase
The man behind Tesla Motors Inc (NASDAQ:TSLA) and its chief executive, Elon Musk, spent most of the weekend on Twitter updating thousands of followers regarding Model 3 reservations and answered most of their queries related to the mass-market sedan. Following the weekend, Tesla shares opened the market higher and went on to hit the $250 mark. Tesla shares jumped as high as 5.64% to a six-month high of $250.98 on Monday, closing the day at $246.99, up 3.96%.
By the end of Saturday, Mr. Musk announced three-day reservations climbing to 276,000, implying $276 million in deposits and $11.60 billion worth of backlog (average selling price of $42,000 with options). He also said that a full-week update will be given on Wednesday evening.
The executive also admitted that Model 3 demand was stronger-than-expected and Tesla will be focusing closely on the accelerating production ramp. Regarding the sedan’s specification, Mr. Musk stated that while some of the features like wheels and black color matte will likely end up in the production model due to high demand, some unappealing features like dashboard and steering will be modified by the Model 3 unveil Part 2. He also highlighted expansion plans for Asia and Europe.
Additionally, Global Equities Research’s Trip Chowdhry had projected reservations numbers to cross 300,000 by April 3(first week-end). He believes customers have “seen and appreciated” the Model 3. With those pre-order numbers, Tesla would create another world record in Consumer Tech industry of receiving over $10 billion worth of reservations (considering base-price of $35,000).
From Model 3 test drives, Mr. Chowdhry thinks it is fast and spacious with superb handling and exceptional comfort. Model 3 with continuous pane of glass is an extension from the windshield, he stated. The analysts also said there are “no traditional gauges” in the mass-market vehicle and it is “very simplistic and elegant.”
The research firm is betting that Model 3 will be delivered as per schedule, without delays. With elegant and simple design, Model 3 production would be like “breeze.” Tesla is expected to optimize mass manufacturing with combination of aluminum and steel.
“Looking at the Model 3 inside and out…we think Model 3 supply chain is at least simpler by a factor of 3,” Mr. Chowdhry noted.