The auto-maker has received a number of pre-order for its Model S and it has started working on those deliveries already.
The pre-hype, event and post pre-order, all have turned out to work in Tesla Motor’s favor after the launch of its Model S at the March 31 event. The auto-maker has been quite successful in grabbing the attention of its audience and already has pre-orders of over 267,000, according to an update for the company’s chief executive officer Elon Musk. Only the pre-orders, at this point amount to a hefty amount of $276 million in cash.
The much anticipated mass market vehicle by Tesla was introduced last week at the auto-maker’s Model S launch event and has managed to surpass everyone’s expectations.. Potentially, the model is likely to get more orders worth $11.59 billion. It has managed to receive a more-than-expected response after the event however it was already understood that the event will be a success.
Due to the pre-hype, right before the event Tesla stock was trading up 3.4% at $237.59 and furthermore, the stock went even higher the next day. The company owes most of the product’s high demand to the pre-hype and buzz that it managed to create right before the launch. Usually Tesla motors does not need to market its product however before the launch of Model S, the management and the CEO himself, marketed the product on Twitter and released teaser pictures of the car.
However, the question that arises now is whether the company will be able to make the deliveries of these vehicles on time. There are many reasons to believe that the automobile organization will not make the same mistakes that it made with Model X as the Elon Musk, himself during the fourth quarter earnings call admitted the mistake that the auto-maker made with the Model X. He further stated that they realize that a lot of features and technologies were put into the specific model which was too much for a single product. Due to this reason, the product suffered production lag because it became too hard to produce it.
Mr. Musk admitted that it was one of the most difficult vehicles to produce in the world. However, we are quite sure that they have learnt from their mistakes and that they will not be repeating the same mistakes with Model S, the mass market electric vehicle (EV). This product is said to be make-or-break for the auto-maker. Tesla further stated that this was just part 1 of the automobile and there will be in a part 2 in which they will introduce additional features and that is why they have introduced to the vehicle to the customers almost two year prior to the actual launch.
The vehicle is expected to hit the market by the end of 2017 and the reason for the late launch is that they want to make sure that all the additional features are tried and tested properly before the deliveries are made to the customers. From Global Equities Research, Trip Chowdhry stated that the auto-maker has made the product with a ‘Production First’ approach in mind. According to him, the company this time has worked on a very difficult mindset from that of Model X.
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