: Reuters: Tesla, buoyed by strong Model 3 orders, may need more cash

14:13 Apr. 2, 2016

Reuters: Tesla, buoyed by strong Model 3 orders, may need more cash

Tesla Model 3 (Courtesy: Tesla Motors)

New Tesla Model 3 is to be launched only in late 2017

An initial flurry of orders has put Tesla Motors' new Model 3 sedan off to a fast start, but the company may need to raise more cash if it hopes to deliver the new electric vehicle to customers on time, analysts said on Friday.

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Chief Executive Elon Musk's ambitious plans include launching the Model 3, Tesla's first mass-market car, in late 2017 and boosting the company's annual production tenfold to 500,000 by 2020.

But there are concerns among some investors in Tesla, which has promised to turn profitable this year, even after the hoopla and exuberance surrounding the unveiling late on Thursday of a Model 3 prototype.

Watch also Bloomberg and Musk demand ambitious Paris carbon deal

On Friday, Musk said the company had taken orders for 198,000 Model 3s in the first 24 hours. Analysts questioned how long it could take to deliver those cars after the slower-than-expected launch of the company's Model X sport utility vehicle late last year.

Higher-than-expected demand could mean that some customers making early reservations may not take delivery until 2019 or 2020, analysts said.

While the Model 3 will have a starting price of ,000, some analysts expect the first cars will sell for an average of ,000-,000. Tesla prices its current models in several "tiers," depending on content and optional features.

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