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First-Week Tesla Model 3 Reservations In, Worth $14 Billion In Sales

Tesla Motors ( TSLA ) tallies more than 325,000 Model 3 reservations in the first week that preorders for the electric car have been open worldwide. The company tweeted the update Thursday morning and said in a blog post that it would be “increasing Model 3 production plans.” Tesla stock was down more than 2%, near 260, in early-afternoon trading on the stock market today . The early reservations pace has run far higher than analysts and Tesla expected. Tesla stock now gets a 72 Composite Rating from IBD out of a possible 99, and this week has been trading at its highest price since September. Shares rose 3.9% on Wednesday, to 265.42, marking a fourth day straight of better-than-3% gains. Analysts surveyed by Thomson Reuters on average are mildly positive on Tesla stock. Of 21 polled, nine call it a buy or strong buy, five a hold and seven an underperform. At $1,000 each, the first week’s Model 3 reservations bring in $325 million for the California startup, which will have to ramp up production dramatically to get all those cars delivered. The reservations reflect eventual potential sales of $14 billion worth of Model 3 cars if all who’ve reserved follow through with a purchase. A huge step towards a more sustainable future: 325,000 and counting https://t.co/XKlywcYhp8 #Model3 pic.twitter.com/a367jCJgaK — Tesla Motors (@TeslaMotors) April 7, 2016 “A week ago, we started taking reservations for Model 3, and the excitement has been incredible. We’ve now received more than 325,000 reservations, which corresponds to about $14 billion in implied future sales, making this the single biggest one-week launch of any product ever,” Tesla said in its blog post, titled “The Week That Electric Vehicles Went Mainstream.” CEO Elon Musk has estimated buyer spending would likely be an average price of $42,000. (Analysts expect that because the deposits are refundable and just $1,000, not everyone who’s reserved will pony up and actually purchase, though others will be joining the line.) Will give an update tonight for the 3 day total, then last one on Wed for the full week. All efforts focused on accelerating the ramp. — Elon Musk (@elonmusk) April 2, 2016 The Model 3 is slated to start deliveries in late 2017. Musk has been tracking the Model 3 reservations inflow on Twitter ( TWTR ), from 180,000  in the first 24 hours to 276,000 by the end of Saturday. Tesla debuted the $35,000-base-price car last Thursday night at a launch party at the Tesla design studio in Los Angeles, where IBD tried a ride in the Model 3 . It’s a mass-market vehicle expected to compete with gas-powered cars like BMW’s 3 Series and similarly priced ones from Volkswagen ’s ( VLKAY ) Audi, Daimler ’s ( DDAIF ) Mercedes-Benz and Toyota ’s ( TM ) Lexus, as well as electrics like General Motors ‘ ( GM ) Chevrolet Bolt. While Tesla expects to be able to build up to half a million cars annually by 2020, it hit a speed bump in the first quarter and delivered fewer vehicles than expected — 12,420 — after supplier parts shortages for its latest Model X crossover. Tesla partly blamed its own “hubris” in adding too much technology to the vehicle too early. This Is What It’s Like To Ride In A Tesla Model 3

Tesla Model 3 Reservations Count Ahead; Stock Hits 7-Month High

Loading the player…   Rising nearly 4% Wednesday, Tesla Motors ( TSLA ) stock has reached its highest since September, ahead of a first-week Model 3 reservations update that was expected from CEO Elon Musk later in the day, but put off till early Thursday. @FreshDialogues will have the full week's number early tomorrow morning — Elon Musk (@elonmusk) April 7, 2016 Musk said on Twitter Wednesday night “will have the full week’s number early tomorrow morning.” He’d said over the weekend that the $1,000 refundable preorder deposits for the $35,000 car reached 276,000 Saturday — far above analysts’ expectations and Tesla’s own. Will give an update tonight for the 3 day total, then last one on Wed for the full week. All efforts focused on accelerating the ramp. — Elon Musk (@elonmusk) April 2, 2016 Tesla Motors Stock Analysis Tesla stock lifted 3.9% in the stock market  Wednesday, closing at 265.42. Shares also rose more than 3% in each of the prior three trading days that followed Thursday’s unveiling of the electric Model 3, a mass-market vehicle expected to compete with gas-powered cars like BMW’s 3 Series and similarly priced ones from Volkswagen ’s ( VLKAY ) Audi, Daimler ’s ( DDAIF ) Mercedes-Benz and Toyota ’s ( TM ) Lexus, as well as electrics like General Motors ‘ ( GM ) Chevrolet Bolt. The stock is building the right side of a very long, deep base and is not in buy range.  But Tesla’s IBD Composite Rating has now risen to 72 out of a possible 99. The CR factors in its earnings and loss history, stock moves and more. Can Tesla Build Model 3 After Model X Miss? This week, Tesla missed its Q1 car unit sales expectations. So, can Tesla build all those Model 3s in light of its difficulty getting out just shy of 15,000 cars last quarter? The company said Monday that “severe Model X supplier parts shortages” of just a few parts were due partly to its own “hubris in adding far too much new technology to the Model X in version 1.” So many preorders of the $35,000 Model 3 so soon can create a big production backlog. The Model 3 is due out starting in late 2017. CEO Musk says he’s rethinking production planning. Tesla Analysts Forecast Production Pacific Crest Securities analyst Brad Erickson predicts Tesla “can deliver 370,000 vehicles” in 2020, Stifel’s James Albertine sees 200,000, and Tesla has predicted half a million. On how many Model 3 reservations will turn into sales, Erickson sees “huge optimism, but modest lack of conviction of actual purchase,” given that the deposits are fully refundable and only $1,000 each. Erickson is keeping his Tesla stock rating at sector weight. He says, “we need more comfort with the upside scenarios … before becoming more constructive on the stock.” Analysts polled by Thomson Reuters are on average only mildly positive on Tesla stock, with a lot of future expectations already built into the price. Of 21 analysts polled, nine call Tesla a buy or strong buy, five a hold, and seven an underperform. Related : Tesla Stock Shrugs Off Parts Shortage; Model 3 Reservations Pass 276,000 This Is What It’s Like To Ride In A Tesla Model 3  

Tesla Stock Hits 7-Month High With Model 3 Demand, Model X Delays

Loading the player… Going into Wednesday trading, Tesla Motors ( TSLA ) stock sat at its highest since September, ahead of a first-week Model 3 reservations update expected from CEO Elon Musk later in the day. He said Saturday that the $1,000 refundable preorder deposits for the $35,000 car reached 276,000 — far above analysts’ expectations and Tesla’s own. Will give an update tonight for the 3 day total, then last one on Wed for the full week. All efforts focused on accelerating the ramp. — Elon Musk (@elonmusk) April 2, 2016 Tesla Motors Stock Analysis Tesla stock rose more than 3% in each of the three trading days following Thursday’s unveiling of the electric Model 3, a mass-market vehicle expected to compete with gas-powered cars like BMW’s 3 Series and similarly priced ones from Volkswagen ’s ( VLKAY ) Audi, Daimler ’s ( DDAIF ) Mercedes-Benz and Toyota ’s ( TM ) Lexus, as well as electrics like General Motors ‘ ( GM ) Chevrolet Bolt. The stock is building the right side of a very long, deep base. But Tesla currently only gets a 51 Composite Rating out of a possible 99 from IBD. The CR factors in its earnings and loss history, stock moves and more. Can Tesla Build Model 3 After Model X Miss? This week, Tesla missed its Q1 car unit sales expectations. So, can Tesla build all those Model 3s in light of its difficulty getting out just shy of 15,000 cars last quarter? The company said Monday that “severe Model X supplier parts shortages” of just a few parts were due partly to its own “hubris in adding far too much new technology to the Model X in version 1.” So many preorders of the $35,000 Model 3 so soon can create a big production backlog. The Model 3 is due out starting in late 2017. CEO Musk says he’s rethinking production planning. Tesla Analysts Forecast Production Pacific Crest Securities analyst Brad Erickson predicts Tesla “can deliver 370,000 vehicles” in 2020, Stifel’s James Albertine sees 200,000, and Tesla has predicted half a million. On how many Model 3 reservations will turn into sales, Erickson sees “huge optimism, but modest lack of conviction of actual purchase,” given that the deposits are fully refundable and only $1,000 each. Erickson is keeping his Tesla stock rating at sector weight. He says, “we need more comfort with the upside scenarios … before becoming more constructive on the stock.” Analysts polled by Thomson Reuters are on average only mildly positive on Tesla stock, with a lot of future expectations already built into the price. Of 21 analysts polled, nine call Tesla a buy or strong buy, five a hold, and seven an underperform. Related : Tesla Stock Shrugs Off Parts Shortage; Model 3 Reservations Pass 276,000 This Is What It’s Like To Ride In A Tesla Model 3