This week, electric car pioneer Tesla Inc. (TSLA) is sending out e-mails to all reservation holders of its first mass-market vehicle, the Model 3 sedan, in order to inform them that their orders are ready. The Palo Alto, California-based company is asking all who put down a $1,000 deposit for the car to confirm their orders and configure their vehicles with an additional $2,500. (See also: 3 Things We Heard at the Tesla Annual Meeting.)
The news comes as Tesla is scrambling to ramp up production of its Model 3 sedan to reach a target of 5,000 vehicles per week, a goal that Tesla Chief Executive Officer Elon Musk has postponed a number of times. Production setbacks have led many on the Street to become more bearish on Tesla stock, doubting Musk's remarks that the tech firm will not need to raise additional capital to fund operations.
An additional $2,500 per vehicle should provide Tesla with much needed cash during its critical second quarter. The firm does not break down reservations by region, and has not disclosed a reservation number recently. Currently, customers can choose between Model 3 Long Range Rear-Wheel Drive, Model 3 Long Range Dual Motor All-Wheel Drive and the Model 3 Performance. The basic Model 3 sedan, which has a less expensive battery, starts at $35,000 and is not yet available.
Tesla Races to Meet Model 3 Q2 Targets
Earlier this week, analysts at Goldman Sachs issued a research note reiterating their sell rating on TSLA shares and forecasting the firm to fall short of its targets when it reports its Q2 production and delivery numbers in the first few days of July.
Meanwhile, Musk has indicated that it is "quite likely" that the firm will reach its goal of 5,000 Model 3 units per week by the end of June. Tesla has erected a massive tent this month at its Fremont, California, factory to house another assembly line for the sedan.
Tesla stock is trading down about 0.6% Friday afternoon at $347.95, reflecting an 11.8% gain year-to-date (YTD), compared to the SP 500's 2.28% increase over the same respective period. (See also: Tesla Will Miss Model 3 Goals Again: Goldman Sachs.)