Please ensure Javascript is enabled for purposes of website accessibility

Instant Analysis: Tesla Motors to Begin Taking $1,000 Model 3 Reservation Payments on March 31

By Evan Niu, CFA - Feb 11, 2016 at 12:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Model 3 is on track to begin production next year.

What happened?
Following its fourth-quarter earnings release last night, Tesla Motors (TSLA -1.79%) CEO Elon Musk has confirmed new details around the highly anticipated unveiling of the forthcoming Model 3. Tesla again reiterated that the $35,000 starting price tag remains on track, and that total is before factoring in any related tax credits or incentives. Production and launch also remains on track for late 2017. Musk also tweeted out some relevant details:

The company will begin taking reservation deposits on March 31 at its retail locations, and online the next day. Tesla is unveiling the Model 3 on March 31. Musk also added that unlike prior vehicles like the Model S and X, there will be no Signature series and all reservation payments will be $1,000.

Does it matter?
Much of Tesla's ambitious valuation metrics are predicated on the idea that the company can and will be able to produce mass-market affordable electric vehicles. That makes the Model 3 incredibly important to Tesla's future growth prospects that are being priced into the stock right now.

In fact, Tesla reiterating with confidence that everything remains on track is one reason why investors brushed aside the fact that Tesla lost a lot more money than expected during the fourth quarter. Tesla's adjusted net loss last quarter was $0.87 per share, compared to the consensus estimate of an adjusted net profit of $0.12 per share.

General Motors (GM -1.59%) has unveiled the new Chevy Bolt, which is expected to cost around $37,500 before federal tax credit and launches later this year. While General Motors will likely beat Tesla to the mass market, Tesla welcomes the competition as it helps promote the broader adoption of electric cars.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$685.47 (-1.79%) $-12.52
General Motors Company Stock Quote
General Motors Company
GM
$33.45 (-1.59%) $0.54

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
319%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.