Tesla Just Made $4 Billion in Less Than 24 Hours
Tesla received more than 115,000 pre-orders on its new Model 3 in less than 24 hours, and at $35,000 a pop, that equals more than $4 billion.
At the introduction of the Tesla Model 3, CEO Elon Musk confirmed that more than 115,000 pre-orders for the Model 3 have been placed worldwide in less than 24 hours. To put that into perspective, Mitsubishi sold 95,342 vehicles total in the U.S. last year. If you really want to open your eyes, the Japanese automaker moved only 115 of its i-MiEV electric vehicles.
Although those pre-orders for the Tesla Model 3 include countries all around the world, it’s a stunning figure when you consider that people were lining up to put down a $1,000 deposit on a $35,000 car they had never seen and knew barely anything about.
To be clear, the deposits total just $115 million, but if all those potential buyers do stick with their deposit the total will come out to over $4 billion.
SEE ALSO: 5 Facts That Were Just Unveiled About the Tesla Model 3
The Model 3 isn’t heading to production until next year, but Musk promises that deliveries will start in 2017. It will have an all-electric range of at least 215 miles, although the company is hoping to exceed that figure by the time it heads to production. What was unveiled has been referred to as “part 1” with the “part 2” unveiling being closer to production form.
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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You realize that taking in deposits on 4 billion dollars worth of vehicles is not even remotely close to the misleading headline of "Tesla Just Made $4 Billion in Less Than 24 Hours", right? Even when these vehicles are eventually made and paid for, the amount Tesla will make on those sales is likely less than 10 percent of the stated number. This is irresponsible journalism at best.
"Tesla Just Made $4 Billion in Less Than 24 Hours" That is correct. Disclaimer - only if you ignore the 10 years they have been working toward this moment, the two more years they will be working until the first car is sold, the expenses of 15,000 current employees, the overhead of being a heavy industrial manufacturing corporation, the cost of the infrastructure required to grow from being five guys with an idea into a company with $4 billion dollars in revenue, and the billions of dollars invested in developing in this - their latest product.