Wall Street loves Tesla’s new Model 3

Wall Street loves Tesla’s new Model 3

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The very early reviews for the Tesla Model 3 — from Wall Street — are in. And they’re positive.

Shares of Tesla were up about 6% Friday, after the company revealed its first mass market car late Thursday night in California.
The very early reviews for the Tesla Model 3 — from Wall Street — are in. And they’re positive.

The price of the car will start at $35,000 — about the average price of a new car in the United States.
A bump in Tesla (TSLA) shares Friday could wipe out losses for the year.

The company’s stock has been under pressure from low oil and gas prices, raising concerns about future demand of a mass market electric car.

Buyers of Tesla’s luxury Model S and Model X are not likely to base their purchase on the price of gasoline. But sales of many fuel efficient mass market cars have suffered recently.

elon-musk-teslaInvestors have been concerned about delays and cost overruns associated with the production of the Model X crossover, which went on sale late last year. And production of the Model 3 has gotten off to a slower start than some company watchers had expected.

Shares of Tesla were down more than 40% year-to-date in mid February.

But Tesla shares have been climbing for the last month as oil prices staged a recovery and anticipation built for the Model 3 unveiling.

Buyers were able to go to Tesla stores on Thursday and put down $1,000 deposits to reserve their place to buy a car, which won’t be available until at least the end of next year.

Tesla CEO Elon Musk said Thursday night that the company had already gotten 115,000 Model 3 deposits. By comparison, only 107,000 Model S models were on the road as of February. The Model S, which starts at $70,000, went on sale in mid-2012. Overall, the company expects to sell between 80,000 and 90,000 cars in 2016.

The deposits brought in more than $115 million on Thursday alone. That amount could swell from online deposits, which Tesla started taking deposits online.

 

SOURCE: www.money.cnn.com

 

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