Tesla (TSLA) is modestly lower (in-line with the technology sector) after the company officially unveiled the Model 3 on Friday night.
The first thirty Model 3s were delivered, mostly to employees that can test it out. There weren't' a ton surprises that came from the event. The Model 3 achieves 220 miles of range while starting at $35,000 before incentives. The Long Range battery option has 310 miles of range, starting at $44,000.
Elon Musk's plans for the first mass-market electric vehicle appear to be on track. Deliveries of the Long-Range vehicles will begin in late October but production will have to ramp exponentially in order to meet the massive demand.
Reservations for the Model 3 are higher than 500,000.
Elon Musk said the company would be in ‘production hell' in the coming months while carefully ramping output of the Model 3.
Tesla will report second quarter results on Wednesday afternoon. Tesla already announced disappointing second quarter deliveries in early July. Deliveries for the first half of 2017 came in at 47,100, the low end of 47-50K guidance. Tesla has made a habit of missing production targets, citing supply constraints.
Some have been think demand for the Model S and Model X has been softening ahead of the Model 3 launch. Last quarter, Elon Musk said the company was in the process of clearing up confusion about the Model 3 market position. The Model 3 is a small entry level sedan while the Model S is the flagship luxury electric vehicle.