Tesla Model 3 Has Already Created $4.5 Billion In Potential Revenue
The Model 3 was finally unveiled Thursday night, and appears to already be a big hit for Tesla Motors Inc (NASDAQ: TSLA).
The electric vehicle will start at a base price of $35,000 (before tax credit, which could lower the price to about $27,500 for buyers), with a range of 215 miles. Production is set to begin towards the end of 2017.
As the event began, CEO Elon Musk said 115,00 preorders had already been placed. That number quickly jumped to over 137,000 preorders. At $35,000, that equates to about $4.5 billion. The $29 billion market cap company is hoping the Model 3 will be the vehicle that reaches the masses.
Buyers put down a $1,000 deposit on their order. Many of these preorders came even before the car's unveiling at 11:30 p.m. ET, so there is potential for that number to quickly increase in the coming days, let alone over the next year or so.
$35,000 is the base price of the Model 3. This standard model includes autopilot safety features, a speed of 0-60 mph in under 60 seconds, and include support for Tesla's high-speed Supercharging network.
"Tesla has a history of introducing a vehicle with a reasonably low price and then selling versions that are much more expensive," said Jack Nerad, executive editorial director for Kelley Blue Book, in a statement.
So while Telsa has earned about $137 million in preorders alone, it remains to be seen how high that number can go within the next two years. But it's off to a pretty good start.
Tesla's stock rose steadily over the past month, closing Thursday just under $230 a share. The stock was recently up about 9 percent to $250 in the after-market session.
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