On March 31, Tesla revealed its latest innovation with the new Model 3. Billed as highly sustainable, incredibly safe, and surprisingly affordable, the Model 3 also comes in at less than half the cost of other Tesla vehicles.
But perhaps the most surprising aspect of the Model 3 rollout was the Kickstarter-esque reserve option they promoted. For $1,000 interested drivers were able to reserve their Model 3 for delivery in late 2017. This not only helps Tesla predict sales volume, but provides them with an influx of cash to begin production.
Watch the full reveal video here:
In just a few days, Tesla CEO Elon Musk estimated they had already received 276,000 pre-orders. That means that in less than a weekend, Tesla was able to raise $276,000,000 in capital. That’s more than a quarter billion dollars raised simply from down payments.
276k Model 3 orders by end of Sat
— Elon Musk (@elonmusk) April 3, 2016
While there is plenty of good news for Tesla, what does this mean for other manufacturers in the affordable luxury space? The major luxury players–BMW, Audi, and Mercedes–all have entry-level models in this price range. The technology and sustainability offered by Tesla easily makes the Model 3 a more compelling option. These storied brands need to play catch-up in a big way to keep old and new luxury buyers considering their vehicles.
So what’s the lesson here? It’s always important for brands, no matter how big, to keep thinking outside the box and using new ways to generate buzz.
Would you pre-order a product that wasn’t due for another year? Let us know in the comments.