Shares of Tesla rose to their highest in six months after Elon Musk took the wraps off the highly-anticipated affordable electric Model 3.
Tesla’s Model 3 caused quite a commotion among the brand’s fans and 115,000 enthusiasts already made a reservation and put an upfront of $1,000 each last Thursday, even before the start of the launching event. And by the time Elon Musk’s presentation was done, the number of people craving for the 35,000-dollar electric compact sedan jumped to 133,000. This hype made Tesla’s stock price surge 60 percent up until Thursday’s close of business, since hitting a 12-month low in February as investors betted on the success of the Model 3. The stock jumped 8 percent shortly after the opening, then slowed to $235.76 at mid-morning, up 2.6 percent.
Tesla sold less than 110,000 vehicles in its history through December, but the electric carmaker targets to boost its deliveries by 80 percent in 2016 to around 80,000-90,000 units, aiming to produce up to 500,000 electric cars per year by the end of the decade. And Model 3 is a crucial player in these goals. However, there are some analysts questioning these highly optimistic figures and predicting that Tesla will produce only half that number in 2020. There are also concerns that the company will not be able to meet such a high demand for Model 3, a model set to enter into production next year and to be ready for deliveries in the United States in late 2017.