Many commenters are pointing out that Tesla is the Apple of the automotive industry after the first unveiling of the 2017 Tesla Model 3 that opened pre-order floodgates. It is safe to say that nine days after its debut day, Tesla has been thoroughly inundated with prospective buyers.
So far the automaker has gotten 325,000 pre-orders for its $35,000 sedan which, according to CEO Elon Musk, averaged at $42,000 instead.
That translates to around 1,500 pre-orders achieved per hour or 25 pre-orders per second. Forget measuring in miles per hour, that’s simply insane from the small Palo Alto company.
As such, it is imperative for Tesla to maintain a positive cash flow going into 2017 because there will be folks who are going to withdraw their pre-orders and take back their money.
If Tesla gets hit by production hiccups and keeps delaying the Model 3 like the Model S and Model X before it, then we’ll see plenty of withdrawals. And if Tesla is strapped for cash in that scenario, then it’s going to be in hot soup.
But seeing the way things are going with the ramping up of the Model X production and the runaway sales winner in the Model S, that gloomy scenario is unlikely to happen.