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Tesla Stock Jumps As Model 3 Reservation Counter Spins To 180,000

Loading the player… Tesla Motors ( TSLA ) stock rose on Friday after Thursday night’s Model 3 launch party in Los Angeles tallied ramped-up reservations and revealed a good-looking design with glass on the back half of the roof clear all the way to the trunk. A reservations odometer actually spun at times during the event, moving past 134,000 while the afterparty was still going strong, outpacing the estimates of Tesla analysts. At $35,000 per car, that would amount to almost $4.7 billion in potential revenue when the Model 3 is actually delivered. The deposits are $1,000 a pop and said to be fully refundable. “According to management, reservation orders surpassed 150K during the evening (and presumably still growing beyond our two incremental reservations early this morning),” Stifel auto analyst James Albertine said in an overnight research note. That “is roughly 10x the 15-20K we expected in the first days of the launch and 50% greater than the 50-100K we expected by the end of this year.” He added: “Thoughts. We are simply awestruck by the demand surfacing for the Model 3.” Elon Musk tweeted out just past noon ET that reservations have hit 180,000. 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 Shares rose as high as 247.90 on the stock market today , the best since early October. But gains pared to 2.4%, at just over 235, by early afternoon. Tesla is not currently highly ranked by IBD, with a Composite Rating of just 28 out of a possible 99, factoring in its earnings growth record, stock market performance and other metrics. The Model 3 pre-order window opened around the world Thursday at Tesla stores. “Orders for the Model 3 in the last 24 hours have just passed 115,000,” Elon Musk, CEO of the electric car maker, announced at the 8:30 p.m. Pacific Time launch. Lines at some Tesla stores had stretched far. The rest of the Thursday reservations were racked up during the event, where a bevy of Tesla Model S, Model X and Roadster owners conversed over the din of a DJ. “Orders for the Model 3 in the last 24 hours have just passed 115,000,” Tesla CEO Elon Musk just said. $TSLA #Model3 pic.twitter.com/ZWWb9LmhGj — Donna Howell (@IBD_DHowell) April 1, 2016 Several people IBD spoke with also ordered a Model 3 at the launch party. PCs were set up to take reservations online, with the general window for online reservations opening shortly before Musk took the stage to introduce the new car. Sleek, fast (we took a test ride) and smaller than its siblings, the  Model 3 is slated to roll off the assembly line in late 2017. It’s seen competing with the BMW 3 Series and similarly priced entry-to-midrange luxury vehicles from Volkswagen ‘s ( VLKAY ) Audi,  Daimler ‘s ( DDAIF ) Mercedes-Benz and Toyota ‘s ( TM ) Lexus, as well as electrics like the General Motors ( GM ) Chevrolet Bolt and a variety of hybrids. Tesla’s challenge now is ramping up production to meet the better-than-expected demand on time, and pushing down battery costs enough to profit with a car half the price of its last two models. About half of the current Tesla owners that IBD spoke with at the launch event expect the Model 3 to come out on schedule. The others wouldn’t bet on it. Tesla’s last model unveiling, also at its design facility in Los Angeles, was the Model X crossover in February 2012. After delays, that finally started going to reservation-holders at the end of September 2015. Bob and Linda Ashmore of San Carlos, Calif., have a Roadster and a Model S, and just put in a reservation for a Model 3. “We ordered one today here, so we’re looking forward to seeing what it’s actually going to look like,” Bob Ashmore told IBD as the launch party was getting started. He expects it to be built on time, and he and Linda have visited the factory several times. “They’ve got plenty of capacity,” Bob Ashmore said. “This has been a dream and vision of Tesla from the beginning,” Linda Ashmore said. “To get an affordable car for the masses.” RELATED:  Tesla Motors Model 3 Revealed .

‘Record Breaking’ Model 3 Order Frenzy Sends Tesla To 6-Month High

Loading the player… Tesla Motors ( TLSA ) stock hit its highest level since October at the start of trade Friday, after its Model 3 reveal Thursday night proved to be a hit. The electric car maker has already received 180,000 orders for the $35,000 car in the first 24 hours, far more than Wall Street expected. That has prompted analysts to raise their order projections, with Global Equities Research seeing over 300,000 pre-orders through the first weekend. The analyst said that $10 billion worth of reservations would set a world record for pre-orders for a consumer tech company. The mass-market car has some of the same features as its luxury counterparts, including supercharging and autopilot. The Model 3 also comes with a 215-mile battery charge, and can go from zero to 60 in less than six seconds. And with customers lining up to make their reservations as if they were in line for the latest Apple ( AAPL ) iPhone, analysts expect this car to dominate its price category. Shares gapped up nearly 8% in heavy volume Friday morning to hit their highest level in six months, close to 250, before paring their gains to a 2.4% rise in the early afternoon. Tesla has been finding support at the 200-day line over the last few sessions, and the stock is now trading about 18% below its high reached last July. Tesla CEO Elon Musk indicated Thursday night that he expects Model 3 deliveries to begin on time, before the end of next year. That’s about a year after GM ’s ( GM ) Chevy Bolt is expected to enter production. But Global Equities Research said that the “Model 3 has been designed for the iPhone generation consumer,” and “there is no way BMW, Porsche, GM, Toyota ( TM ), Honda ( HMC ) or any other existing auto manufacturer can even come close to competing with Tesla Model 3.” But what if Apple decides to make its own car? Guess we’ll have to wait to find out. Apple rose fractionally Friday, while GM and Toyota lost nearly 3%, and Honda dropped about 4%, as most automakers reported weaker-than-expected March U.S. auto sales.

Yahoo Reportedly Plans To Amend Bylaws; Proxy Battle Looms

Yahoo ( YHOO ) is implementing “proxy access” — an increasingly used strategy making it easier for longtime shareholders to nominate a board member — as the company girds for what’s being called an epic proxy battle. Yahoo said  that it had amended its bylaws to allow a stockholder or group of as many as 20 investors that hold at least 3% of its shares continuously for three years to nominate directors, according to a report in the Wall Street Journal. The move goes into effect after Yahoo’s 2016 annual meeting, which is expected in June or July. Activist hedge fund investor Starboard Value has nominated its full slate of directors under Yahoo’s existing bylaws. The newly announced proxy-access change wouldn’t have affected Starboard’s ability to replace the directors even if proxy access had been in place for the upcoming meeting, Patrick McGurn, special counsel for proxy advisory firm Institutional Shareholder Services, told the WSJ. About 21% of S&P 500 companies have adopted proxy access, up from about 1% in 2014, according to ISS. Apple ( AAPL ) amended its company bylaws in December to make it easier for shareholders to make board nominations.  General Electric ( GE ) and AT&T ( T ) are among other companies that have instituted proxy access, said the WSJ, with 117 U.S. companies embracing the change last year. At the annual meeting, Yahoo shareholders will vote on whether to replace all nine board members with a slate nominated by Starboard, which wants to see change. Starboard  said last week that since Yahoo CEO Marissa Mayer and others in the company’s leadership “have repeatedly failed shareholders,” the hedge fund wants to sweep out all of the ailing Web company’s directors and replace them with its own slate. Yahoo advisors have contacted potential buyers, including Verizon Communications ( VZ ), IAC/InterActivecorp ( IAC ) and Time ( TIME ), as well as private-equity firms TPG and KKR ( KKR ). Yahoo stock rose a fraction Thursday but was down a fraction in midday trading in the stock market today , near 36.