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Tesla (TSLA) Model 3 Achieves 325K Reservations in a Week

Reservations for Tesla Motors, Inc.’s TSLA Model 3 have reached 325,000 units in the first week since the vehicle was unveiled. This translates into implied future sales of nearly $14 billion. Per Tesla, this is the “single biggest one-week launch of any product”. What makes it more impressive is the fact that the electric carmaker does not use any traditional means of advertising.

While the demand for Model 3 was anticipated to be strong, these figures have exceeded expectations manifold. As a result, the company will have to adjust its production plans.

Production of Model 3 is expected to start in late 2017. However, the large number of pre-orders will result in a long wait for those placing orders now. On the other hand, all people placing pre-orders may not necessarily purchase the vehicle.

Model 3 is a four-door, five-seat electric sedan with a range of 215 miles per charge and acceleration of 0–60 mph in less than 6 seconds. It is equipped with Tesla’s Autopilot hardware, has both front and rear trunks, and is expected to obtain five-star safety ratings. Although Model 3 will be a rear-wheel-drive car, it will offer all-wheel-drive as an optional feature.

The car’s price will start at $35,000. However, CEO Elon Musk estimates that after adding the cost of optional features, Model 3 will sell at an average price of $42,000.

Tesla currently carries a Zacks Rank #3 (Hold). Some better-ranked automobile stocks include Cooper Tire & Rubber Co. CTB, Visteon Corporation VC and The Goodyear Tire & Rubber Company GT. While Cooper Tire currently sports a Zacks Rank #1 (Strong Buy), both Goodyear and Visteon hold a Zacks Rank #2 (Buy).

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TESLA MOTORS (TSLA): Free Stock Analysis Report
 
VISTEON CORP (VC): Free Stock Analysis Report
 
GOODYEAR TIRE (GT): Free Stock Analysis Report
 
COOPER TIRE (CTB): Free Stock Analysis Report
 
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