Share prices of Tesla Motors Inc. has been witnessed to surge on Friday following rush of interest in the Model 3 sedan electric car. The mass market car has been unveiled on late Thursday by Tesla CEO Elon Musk.
More than 137,000 people have submitted a $1,000 deposit for the vehicle during the first day the company accepted pre-bookings. The pre-booking figure has been revealed during the unveiling ceremony in California.
During the unveiling event, Elon Musk has also informed that Model 3 will be capable of traveling 215 miles through a single charge. The new electric car is expected to go into production next year and get ready for deliveries in the US during late 2017. However, analysts question whether and how soon Tesla will be able to meet growing demand for the stylish compact sedan ranging from $35,000.
Tesla confirms that the pre-order deposit money is fully refundable. The deposits in turn confirm a place in the queue for the prospective buyer offering the right to purchase the Model 3. However, it does not constitute the purchase or order of a vehicle, reports USA Today, citing Tesla fine print of the reservations materials as the source. Survey conducted by brokerage, Evercore ISI, prior to the unveiling suggests that investors have expected around 55,000 orders during the first 72 hours. Investors have also predicted for 117,000 pre-bookings by the end of this year, according to a report published in Reuters. Following the unveiling event, share prices of Tesla have soared 60% since hitting a twelve-month low in February. The stock has been traded at $246 during extended hour trading after getting closed at $229.77 on Thursday. George Galliers, analysts for Evercore ISI, informs in a client note that the unveiling has exceeded all expectations. The vehicle poses to be a game-changer and is believed to play a critical role in Elon Musk's desire to expedite the auto industry's transition from internal combustion engine to electric, reports Fox Business, citing the client note as the source. Analysts assume that most of the orders have been placed before the presentation ceremony. They also predict that orders will pick up at a steady pace over the coming months. Galliers observes the Model 3 as more affordable compared to BMW AG and Mercedes. BMW has sold 440,000 units of 3-series cars and Mercedes 470,000 C-Class vehicles last year. He also considers Model 3 to compete with General Motors' Chevrolet Bolt EV, expected to get launched later this year.
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