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David Robinson: Tesla's Elon Musk has a message for Buffalo skeptics


"Model 3 net reservations have still steadily climbed every month", Tesla said today, "and have even accelerated further in recent weeks".

Tesla Inc. (NASDAQ:TSLA) chief executive Elon Musk said about 63,000 people have cancelled their orders for the Model 3 as he presented the electric vehicle maker's second quarter earnings.

And there are questions about whether the Model 3 will cut into sales of the the higher-end Model S, which could put pressure on Tesla's margins.

Elon Musk, the Tesla CEO, revealed during the quarterly earnings call of the company, that about 63,000 people have cancelled their Model 3 pre-orders.

The American brand recorded a total revenue of £2.12bn in the second quarter of this year, compared with £989m for the same period in 2016.


Musk outlined the production plan for the Model 3, which forecasts a production of 5,000 cars per week by the end of 2017.

The German company's items are already in Tesla's Model S cars, the world's top-selling electric vehicle, but the Model 3 - priced at $35,000 in the United States - has the possibility to substantially outsell the $60,000 Model S.

Revenue rose to $US2.79 billion from $US1.27 billion, beating analysts' average estimate of $US2.51 billion, according to Thomson Reuters I/B/E/S. On Wednesday the bulls will want to see some sign, regardless of size, that the fourteen year-old company is ready to reverse that money-losing trend. The company acknowledged its limited capacity and said it would ramp up production next year to make an annual 500,000 units, including Model 3. But investors have long bet on Tesla's future, and Musk's reassurances that the $35,000 Model 3 will be a success refueled the stock on Thursday. The company has never made more than 100,000 cars in a year, and its last two models faced significant delays and production problems. Tesla just delivered the first 30 Model 3s to employees last week. Last week saw the handover of the keys to the first 30 owners of the newly launched electric vehicle.

Until Friday, when the first 30 Model 3s were sold to company employees, Tesla had released few details about its newest vehicle and its pricing structure - meant to lower the entry barrier into the company's luxury niche.

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