Tesla Model 3 Reservations Hit 276,000

Tesla Model 3 reservations

On Sunday, Tesla CEO Elon Musk tweeted that reservations for the new Model 3 had reached 276,000 in the first 72 hours following the official announcement of the vehicle. Tesla has received more preorders for the Model 3 than the cumulative total of Model S/X deliveries since 2012.

Credit Suisse opines:

We believe this much interest, generated only through word of mouth and modest social media promotion from Tesla, in a car that no one has seen yet, is really astounding. We continue to believe that Tesla has a significant headstart in a technology that will eventually dominate automotive. But even if others eventually catch up, it will be very difficult to compete with the perception of Tesla as the clear leader. Therefore we continue to see demand as no issue…profitability remains an open issue, but we continue to believe that will come.

Goldman Sachs states:

Tesla Motors unveiled its long-awaited US$35k Model 3 on March 31. It is set for launch in late 2017. Although more details regarding pipeline orders and allocation to the supply chain won’t be available till likely late April, we believe Hota will remain the primary, if not sole, supplier to Model 3. In our view, orders related to Model 3 will carry lower GM in the nascent stage, but scale benefit should counteract the impact over time.We currently expect Tesla to account for around 22-26% of Hota’s total revenue in 2016-17, and contribution to profit should outpace that to the top line thanks to richer GM of current orders for Model S/X.

See the following visualizations which highlight the cumulative total of Model S/X deliveries vs Model 3 reservations, as well as the performance of Tesla stock and the evolution of Tesla models.