Tesla Model 3 Orders Reach $10 Billion Within 36 Hours

Sonny Go

According to Tesla Motors Inc, the Tesla Model 3 has reached 253,000 orders in the first 36 hours since its announcement, equivalent to around $10.6 billion. The latest addition to the electric car company's lineup is set to be their very first car designed for the mass market. This is indeed a head start for the electric sedan that is not expected to be sold yet for another 18 months.

The Tesla Model 3—stylized as "Model ☰"—is set to go into production and be delivered to customers in late 2017, selling at around $35,000 for the basic model and $42,000 including optional extras. Elon Musk boasted the new electric sedan will have at least 215 miles of range while still being at the same price range as most other budget upscale vehicles. The company had previously sold the Tesla Roadster, Model S, and Model X—all of which carried six-digit price tags.

It was unveiled in a live stream on Tesla's official website on March 31 that was viewed by an invited audience. The massive number of orders were most likely due to the $1,000 refundable deposit, and over 115,000 people had already placed their orders even before the unveiling event itself. In contrast, the Model S had sold 107,000 cars by the end of 2015.

The Tesla Model 3 will be available in India, Brazil, New Zealand, South Korea, South Africa, Singapore, Ireland, and other global markets, thus extending Tesla's reach even further. Tesla's stock prices rose 3.4 percent in the following day and is expected to go even higher due to the unprecedented numbers and the expectations with the company's entry into the automotive mass market, directly competing against other car companies that manufacture petroleum-powered vehicles.

These positives are in contrast to speculations made last year of Tesla losing money with every car sold. Morgan Stanley auto analyst, Adam Jonas, made a note on this development.

"If Tesla can produce and deliver (even roughly on time) the car they unveiled last night at close to a $35,000 price, then this stock is probably quite undervalued. Granted, it's only a fully refundable thousand dollar deposit, but to achieve well over 100,000 preliminary orders for any car in the first 24 hours, even with no deposit, is an admirable achievement."

In October 2015, Elon Musk hinted plans for a future Model Y, which had been trademarked since 2013. It's to be a cross between the Model 3 and the Model X, making it an affordable crossover SUV with falcon-wing doors. Future Tesla models are being aimed to reach a range of 500 miles through the use of a new patented battery system that combines metal-air and lithium-ion batteries for even larger capacities.

[Image via AP Photo/Justin Pritchard]