The revelation comes from a filing as Tesla seeks to raise $1.4 billion in capital in order to bring the Model 3 to market. The company was expected to seek $1 billion, prompting its stock to rise by 3.2 percent, before falling back by 1.5 percent after the new total cam out. Even with the extra cash on hand, however, it ought to take the company some time to fill all those orders, as Tesla's plan to produce 500,000 cars a year by 2018 is widely considered to be unrealistic.
"If we wanted to, we believe that we could further increase the number of Model 3 reservations with minimal effort," read the company's filing, "but believe it is better to guide customers to purchase products currently in production." The company currently offers the larger Model S sedan, which currently starts at $76,500 after incentives, and the Model X crossover, starting at $83,000. The new Model 3 is expected to sell for less than half of either amount – projected to start at $35,000 before incentives – and serve as the Tesla's entry-level model.