Actual Tesla Motors Inc Model 3 Reservations Lower Than Presumed

Tesla seems to have implied that it took 400,000 preorders for the Model 3 in April, but this number has been all rumor and speculations based on the automaker’s statements and press releases. But now, the electric car maker says it holds 373,000 reservations for its Model 3 EV, which is expected late next year.

Over 12,000 reservations cancelled

According to Electrek, the EV firm stated the real number — a net total of 373,000 reservations — in an SEC filing. Still, that number is not bad at all for a car that will not ship for at least 18 months and for which the engineering design is not even finished yet. Earlier, the company said it plans to make 500,000 vehicles annually by 2018.

About 12,200 orders were canceled, of which 8,000 were customer cancellations, while the other 4,200 were duplicates canceled by Tesla. The automaker stated in its capital offering prospectus that it unveiled the Model 3, a lower-priced sedan designed for the mass market, on March 31, and as of May 15, they held deposits for about 373,000 customers who reserved one.

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It’s easy to increase Model 3 reservations: Tesla

Tesla reported the numbers as part of its filing to raise about $2 billion in a share offering to pay for the accelerated release of the EV. Much of this investment will come from CEO Elon Musk, who will purchase about 5.5 million Tesla shares, of which he will sell 2.77 million publicly to cover the taxes he owes on his purchase.

Since the unveiling of the Model 3 on March 31, reservations have been coming organically without a promotional push.

In the filing, the electric car maker added, “If we wanted to, we believe that we could further increase the number of Model 3 reservations with minimal effort but believe it is better to guide customers to purchase products currently in production.”

Earlier this month, Musk indicated that the electric car maker would need to raise the same combination of equity and debt to make sure the company has enough cash. The Model 3 is expected to cost $35,000 before incentives and have a range of 215 miles between charges.

On Thursday, Tesla shares closed up 1.91% at $215.21. Year to date, the stock is down almost 10%, while in the last year, it is down almost 14%. The stock has a 52-week high of $286.65 and a 52-week low of $141.05.