Tesla Misjudged Model 3 Demand, Orders Approach 300K Shattering Internal Projection

Two days ago 200,000 people pre-ordered the Tesla Model 3. As of today, the number has potentially skyrocketed to 300,000 pre-orders. Even Tesla CEO Elon Musk seems shocked by the number of people eager to get their hands on Tesla’s upcoming, more-affordable electric car.

Tesla Model III

Musk took to Twitter this afternoon to announce that 253,000 people had pre-ordered the electric vehicle as of 7am EST. Given that it is almost 4pm EST as of the writing of this article, it is a safe bet that this number has increased to 300,000.

Musk had only anticipated that twenty to thirty people would line up in person to pre-order the vehicle. But nearly eight hundred people showed up. Musk was so awed by this number, that he has promised to mail a token of appreciation to every person who pre-ordered the Model 3 in person.

When one follower of Musk on Twitter asked what Tesla had expected, Musk responded that the company had anticipated one-quarter to one-half of the existing pre-orders.

The Tesla Model 3 is similar in design to other members of its family. The roof area with continuous pane glass gives the five passengers in the vehicle extra headroom and the feeling of more space. The Tesla Model 3 will also reportedly go 215 miles on a single charge. You could essentially travel from Boston to New York City without having to stop to charge your vehicle, if Tesla's claims prove true when the final version of the car is released. Musk is also committed to doubling the number of charging stations from 3,600 to 7,200 by the time the car releases in 2017

Tesla Charging Station

Tesla Charging Station in Newark, DE - Jeff Cooper

In addition to the car's technological advances, the biggest draw for buyers of the Model 3 appears to be its price tag. The Model 3 starts at $35,000 and Tesla is only asking for a $1,000 pre-order down payment. Tax incentives could potentially bring the price down to $21,500, however.

The biggest question is in regards to delivery. The first 200,000 people to pre-order the vehicle are the only ones who will receive the generous tax credit. After that, the tax credit falls to $3,750 for six months whereupon it then drops to $1,875 for the following six months. The first 200,000 people will only collect the tax credit, however, if they receive their vehicle by December 31st, 2017. The unexpected number of pre-orders could throw a kink in this plan.

Is the Tesla Model 3 worth the $35,000 price tag without tax credits? Will you be pre-ordering the vehicle? Let us know your opinion in the comments below.

Tags:  Tesla, pre-order, model 3