Tesla Says 12,200 Model 3 Orders Were Canceled
Tesla currently holds 373,000 reservations for its Model 3 electric car due late next year. That follows customer cancellations of about 8,000 cars and 4,200 duplicates canceled by the company.
The numbers were reported as part of a Tesla filing to raise $1.4 billion in a share offering to pay for the accelerated launch of the car. Company executives had previously indicated reservations totaling about 400,000, without giving an absolute number. The reservations have been coming organically, without a promotional push since the March 31 unveiling. Meanwhile, Tesla said, its existing models are still very much for sale.
"If we wanted to, we believe that we could further increase the number of Model 3 reservations with minimal effort but believe it is better to guide customers to purchase products currently in production," Tesla said in the filing.
The $1.4 billion sale of shares falls within most Wall Street expectations after Tesla Chief Executive Officer Elon Musk indicated earlier this month that the company would need to raise "some combination of equity and debt and make sure the company has a good buffer of cash." The company says it plans to make 500,000 units of the Model 3 by 2018.
Earlier today, shares had climbed 3.2 percent after Goldman Sachs Group Inc. estimated Tesla would require only about $1 billion in additional capital. Since Tesla announced the $1.4 billion figure, shares fell back about 1.5 percent in after-hours trading.