Last week, Tesla launched its much-awaited Model 3 – luxurious electric car. In 2016, when CEO Elon MUSK unveiled the specifications of this car, Tesla managed to grab 325,000 numbers of reservations. And by August 2017, the numbers raised up to 455,000 reservations. Well, it is obvious for an electric car with amazing specifications and features to be in great demand.
After the launch of Model 3 on Wednesday, the shareholders showed utmost trust on the product and soon the Wall Street started to bet on the Tesla’s Model 3. Tesla MODEL 3 is a unique luxurious sedan electric car, which has been specially designed to compete against the high volume luxury sedans like Mercedes C class, BMW 3 series, or Audi A4.
Tesla Mode 3 is considered as the least expensive car in its category as the base price of the Model is maintained at $35,000. With the introduction of this innovative electric car, Tesla is planning to capture the maximum market share. The CEO stated that “This car is not only going to offer us good profit, but it will also help us in being the leading electric car maker in the world.”
On the launching ceremony, Tesla launched 30 cars for the employees and announced the start of the manufacturing works. Though Tesla managed to convert the concept model into reality model, the investors started to bet on the product. Since the launch event, the capital of Tesla has jumped over 6%. Well, this is a pretty good sign for Tesla, as the investors are gaining back their trusts on Tesla.
Previously, due to controversy related to the delivery of the car, many customers cancelled their reservations, which led some investors to pull out their share from the Tesla’s capital. According to the reports, the overall order for the Model 3 was marked at 518,000, but as the cars will be delivered around the end of 2018, many customers cancelled their orders and decided to leave.
About 63,000 reservations got cancelled since last year, which led to present orders of 455,000reservations. On this issue, Elon Musk stated that “The innovative electric car is just like a hamburger in a restaurant, if you want to have the hamburger then you have to wait for one and half-an hour.” This hamburger concept supported the present situation and helped Tesla to rise its extra funding in the Wall Street.
Musk also mentioned that since the launch event the company had received around 1800 reservations per day. The rising demand for Model 3 seems to be a revolution in the automobile industry. Till now no such car maker has managed so much of productions. So, the first six months of production is going to be very tough for the company.
Up on the rising demands, the company has ensured that by the end of 2017 December, around 20,000 units will be introduced to the market and following that10, 000 units will be managed every week, to complete all the production works by the end of 2018. Before the launch event, some investors stated that the production targets which are set by Tesla are pretty unrealistic, as it is impossible to manage such huge number of productions.
This kind of skeptic statements created a bit of buzz in the market, due to which some investors left the game. That was a bit tough time for Tesla in the market, but Elon Musk confidently handled the situation. Musk assured that tesla has more than $ 3 billion in hand and the company will ramp up the production works to achieve the targets. As compared to previous year, the overall stock of Tesla in the capital market has raised up to 63% in 2017.
Again, following the successful launch event, some reputed brokerages like RBC capital markets, raised the target price of Tesla from $ 31 to $ 345. This seems a lot of capital funding is going to be available from the Wall Street. Like this, there are some other brokers, who have raised the target price of Tesla.
Joseph Spak, the market analyst of RBC capital markets, mentioned that “There is no reason to doubt on the production targets of Tesla, as it has previously proved its capabilities. There is going to be a lot of challenges for Tesla, but the overall results will be productive”. Some other investors like Kevin Landis also stated that Tesla has always proved all of its predictions on schedule, and it will obviously fulfil the production predictions of Model 3 within the schedule.
Well, the main reason of these rising demands for Model 3 is the amazing features. The model 3 has been designed with great flexibility to replace all the electric cars in the market. For this reason, the base price of the car has been set at $ 35,000. There is also an auto pilot version of this electric car, which has been maintained around $ 44,000. Apart from the affordable price, Tesla Model 3 also features excellent speed.
Musk ensured that model 3 would deliver 60 mph/h in just 5.2 seconds. So, there is no compromise in the speed section. The auto-pilot features of this car along with the supercharging standards are the main craze. For new customers of Tesla, superchargers will be available at low prices. To maintain the operations smoothly, a 15-inch screen is positioned on the dashboard.
Being an efficient electric car maker, Tesla has ensured different safety features in the car. Because of such innovative features, Tesla is not finding difficulties in seeking demands. More the feature of the car more will be the demand. Here the main issue for Tesla is to deliver the demands within the schedule and for an electric car there will also demand for more charging point. Well, the confident attitude of Elon Musk and the rising capitals of Tesla in the Wall Street, suggest that everything will go according to the schedule.