reservation

Tesla confirmed having received more than 325,000 Model 3 reservations a week after opening the process to the public. The automaker claims that it corresponds to about $14 billion in implied future sales.

The company is calculating “implied future sales” on an estimated average sale price of $42,000 after options and by assuming that everyone who placed a deposit will convert it to an order, which adds up to $13.6 billion.

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In an email sent out last night (see below), Tesla confirmed that following the overwhelming number of Model 3 reservations it received, the company is currently “increasing its production plans to minimize the wait for Model 3” – something Elon Musk hinted Tesla was looking into after witnessing the long lines of people waiting at Tesla’s stores to reserve the $35,000 long-range all-electric vehicle.
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Tesla’s stock (TSLA) was up over 4% in early trading this morning after CEO Elon Musk spent his weekend answering questions on Twitter about the newly revealed Model 3 and sending out updates about the number of reservations Tesla is accumulating.

Since Tesla unveiled the vehicle last week, 8 financial analysts issued new notes updating their analysis of Tesla’s outlook and currently the general consensus is a “buy”, but with an average price target of $253 – representing only a ~6% upside.
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Tesla CEO Elon Musk confirmed tonight that the automaker has now over 232,000 reservations for its newly unveiled Model 3:

[tweet https://twitter.com/elonmusk/status/716089404985487361 align=’center’]

Musk has been updating the public on the Model 3 reservations tally which has blown past the most optimistic predictions.
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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.

Model 3 orders at 180,000 in 24 hours. Selling price w avg option mix prob $42k, so ~$7.5B in a day. Future of electric cars looking bright!

— Elon Musk (@elonmusk) April 1, 2016

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.

Thought it would slow way down today, but Model 3 order count is now at 198k. Recommend ordering soon, as the wait time is growing rapidly.

— Elon Musk (@elonmusk) April 1, 2016

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“I’ll get there an hour early,” I thought to myself. “Maybe there will be ten or fifteen people in line, but I need some time to get photos before the doors open.” I arrive at 9:06 to a packed parking lot and a long line. I’m #56 in line at Tesla’s Cleveland location, one of three stores in my home state of Ohio, and it’s raining.

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We were confident that Tesla’s reservation process would be fairly successful, especially in the US due to federal tax credit cap, but this morning we are blown away by the enthusiasm for a vehicle no one has seen yet.

If you have been following our live updates of the queues at Tesla retail locations this morning, you know that over 13,000 16,000 have been spotted waiting in line to reserve the Model 3 in the US and Canada alone.
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Andreas Stephens from Sydney, Australia was the first person reported in line to reserve the Tesla Model 3 in store a whole 2 days before the doors open, but now that we are about 24 hours away from Tesla accepting reservations for its $35,000 long-range vehicle, we are starting to get reports of lines and tents at Tesla stores around the world.
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48 hours before the doors open on Thursday morning, Andreas Stephens is already in queue to be the first person to reserve a Model 3 at Tesla’s store in Sydney, Australia. It looks like the Sydney store is expecting a crowd as they already set up a queue line.

Over 500 people have signed up to campout at Tesla’s retail locations to be among the first to reserve a Model 3 sight unseen, but Stephens is taking it to the next level with 2 full days of camping.
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Thursday evening, Tesla will unveil, perhaps, their most important vehicle in company history, the $35,000 Model 3. Tesla certainly will not be taking their time getting an eye on the demand. Pre-orders begin at the company’s brick-and-mortar storefronts Thursday morning and online Thursday at 8:30pm Pacific (3:30am UTC), during the unveiling event.

You’re reading that correctly: Tesla will be allowing public pre-orders for the Model 3 hours before anyone even sees it. So why would anyone put down $1,000 to reserve a car, sight-unseen, that is probably 2 years away from delivery?
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In a blog post today, Tesla released all the details on how to reserve a Model 3 on March 31st, including the deposit required depending on your country and currency.

Tesla reiterated that reservation starts on March 31st worldwide in store, while it first said that it will be starting at 10am Pacific (5pm UTC), now the automaker wrote that it will take reservations when the stores open – you can check your local store business hours here. Online reservation will start at 8:30pm (3:30am UTC) at the same time that the livestream of the event will start.

The online reservations will be available on the automaker’s newly acquired domain Tesla.com, which currently simply redirect to Teslamotors.com.
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The electric vehicle industry had an exciting start in 2016 with a number of unveilings, notably the Chevy Bolt and Faraday Future’s FFZer01 concept at CES last month, but arguably none is creating more excitement than Tesla’s upcoming Model 3 event next month. When we asked our readers how many reservations they think Tesla will have for the Model 3 by the end of the year, a majority agreed that Tesla will have over 75,000 reservations by the end of 2016.

We have since reached out to a number Tesla retail stores and representatives have told us that they have been receiving a steady stream of calls since Tesla CEO Elon Musk tweeted the date of the Model 3 unveiling and a rough outline of the reservation process. According to the CEO, reservations will start in store on March 31st and then online the next day. Because of this store reps have told us they are expecting waiting lines to get a reservation in the morning.
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Tesla CEO Elon Musk finally released more details about the reservations process for the upcoming Model 3 launch and it gives us an interesting opportunity to discuss the implications of the vehicle’s introduction on Tesla’s limit for the $7,500 federal tax credit for electric vehicles.

We’ve heard some discussion in EV industry about the implications of GM advertising the Bolt’s pricing as “$30,000 after incentives” and in contrast, Tesla is talking about the Model 3’s starting price as being “$35,000 before incentives”.
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There’s been some inconsistencies and very little information about the Model X’s availability and pricing, but it could change in the coming weeks as Tesla says it will invite the next group of reservation holders to configure their cars in the “next few weeks”. The company sent out an email this morning to people who have a reservation for the production version of the Model X (see email below).
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Tesla opened the Model X’s design studio to a select few reservation holders. There are two levels of reservation for the Model X: reservation for the production version which requires a $5,000 deposit and the signature version which requires a $40,000 deposit.

According to users on Tesla’s Norwegian forum,  signature Model X reservation holders can access the design studio to configure their Model X and place their order. 
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