‘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.