Chowdhry: Tesla Has Made $7.5 Billion In 24 Hours From Model 3 Preorders, Production Will Be A 'Cakewalk' - Tesla (NASDAQ:TSLA)

Tesla Motors Inc TSLA unveiled its Model 3 on Thursday, and the hype is just ludicrous. Trip Chowdhry, of Global Equities Research attended the launch event, took a test ride and spoke to roughly 80 Tesla owners. Check out his comments in the article linked below.

A few hours later, Elon Musk tweeted, “Model 3 orders at 180,000 in 24 hours. Selling price w avg option mix prob $42k, so ~$7.5B in a day. Future of electric cars looking bright!”

Following this tweet, Chowdhry shared his thoughts, assuring that the production of the Model 3 will be “a cake walk.” A few points he highlighted included:

1. World Records Digitally-centered clients are getting very excited by Model 3. In fact, the car has set a new world record in the Consumer Technology segment, with $7.5 billion in bookings in its first 24 hours.

2. "Cakewalk" Production Production will “literally be a cakewalk, and will be on schedule.” The analyst explained that more than 60 percent of the vehicle’s body is made of steel, while the remaining part is made of plastic polymer and aluminum; this makes production “very simple and straightforward.”

In addition, the car’s roof is made of Complete Glass, which takes about 10 percent the effort, with 1 percent of potential defects when compared to a metallic roof; this makes manufacturing even easier and faster. Back to the body, the fact that it is made of self contained modules makes the assembly substantially simple and fast, as it takes only 1/3 of the suppliers that the Model S needed; this means that the Model 3 supply chain is three times more efficient and simple than the Model S supply chain. “Hence supplier complexity is reduced by a factor of 3 Hence, delivering first Tesla Model 3 by 4Q'2017 is easily achievable,” Chowdhry concluded.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Image Credit: By Steve Jurvetson [CC BY 2.0], via Wikimedia Commons

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