Tesla Confirms Model 3 Preorders for $35000, to be unveiled in March

Musk announced on an earnings call Wednesday that it expects to ship between 80,000 and 90,000 cars this year, which would beat investor forecasts. “I think that’s pretty exciting and unusual”.

Tesla Motor Inc (NASDAQ:TSLA) also disclosed its plan to unveil Model 3 electric vehicle on March 31, which is as per its scheduled launch.

Tesla heads into the year with some momentum. Previous year in the USA, the Model S outsold the Mercedes-Benz S-class (25,202 versus 21,934) and per-car profit margins are reaching 30 percent.

According to the company, orders for its New Model S rose over 35% year-over-year (YoY) in the fourth quarter, while reservations for Model X surged over 75%, compared to prior year, despite “extremely limited initial exposure for this vehicle”. “It bodes extremely well for the future”. Here, the company plans to start installing the Model 3’s production machinery.

He said the economics of the Model 3 – expected to cost about $35,000, about a third cheaper than the Model S – will also be crucial to Tesla’s survival.

Model X parked outside Tesla Motors’ Fremont plant.

Tesla’s shares had fallen in recent days as investors anxious that the Model 3 would be delayed. The company has revealed when it’s going to start taking reservations for the Model 3 and how much customers will have to pay initially to reserve a unit. Morgan Stanley’s Adam Jonas, a longtime Tesla bull, recently said he’s not convinced Tesla can hit that target.

“The challenge at the moment for electric cars is really encouraging the public to try them, experience them, realize the benefits and also to get over that misconception around range anxiety”, he said.

But reportedly that price tag is likely to be reduced further by government subsidies for electric vehicles in place around the world.

Now that it has ironed out the complications with the falcon wings, it should be smooth sailing to continue offering them, right?

There aren’t any fundamental issues with the Model X, Musk said. In Q4, the firm reported that Non-GAAP operating expenses jumped to $429 million to mark an 18% sequential increase.

“Cash is king”, he said.

“There’s was some hubris with the Model X, Musk said”.