scenic_mountain_1

Never one to shy away from controversial accounting, Tesla CEO Elon Musk today tweeted his take on the initial Model 3 sales numbers which are at 180K barely 24 hours into sales. By his math, which he estimates an average of $7000 in options on each Model 3 sold and more controversially, counting every Model 3 reservation as a sale, he’s come up with a $7.5 billion payday for Tesla.

Clearly, everyone who put down $1000 yesterday and today isn’t going to buy a Model 3 worth an average price of $42,000. But a huge number of those people will and more importantly, many more people will try to get in early to reap the $7500 tax incentive from the US government over the coming months.

Update: The reservation count is now nearing 200K and we’re likely nearing the end of the $7500 tax credit window.

The reservation to order conversation rate could end up fairly high, but it’s unlikely that will be 100% like Musk is suggesting in his latest tweet. Not everyone was surprised by the high number of Model 3 purchases however.

From the deposits alone, Tesla now has a virtual $180 million 18-month interest-free loan.

Investors and Wall Street analysts are mostly happy with Tesla’s Model 3 event last night and the reservation results. The company’s stock (TSLA) surged about 10% in early trading before settling down to a 3% gain at ~$236 right after the opening bell.

You can read our post summarizing everything new we learned at the Model 3 event here.

FTC: We use income earning auto affiliate links. More.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

About the Author