One week into the pre-order process, Tesla Motors says it has received more than 325,000 fully refundable pre-orders for its mass-market Model 3. That’s more cars than it has ever produced.
Intriguingly, around 5% of people placed an order for two Model 3s, the maximum limit Tesla CEO Elon Musk implemented before opening pre-orders. Each pre-order deposit is $1,000.
Musk is quick to point out, if every one of these customers goes through with the purchase of their pre-ordered Model 3 and pays an average retail price of $42,000 per car, that adds up to $14 billion in revenue.
Ignoring loans and potential revenue, Tesla has brought in $325 million in pre-orders, which is impressive. However, at the company’s current monthly spending rate, that’s around two months worth of operation funds.
Of course, Tesla is years away from producing the cars and thereby bringing in that money. However, in the meantime, it can take out loans against those pre-orders so it can fund the production of the Model 3. That might prove to be the most challenging part of the whole process.
Taking the pre-orders is easy. Filling them will be tough — especially for a company that has produced around 200,000 total cars to date.